First time self employed buyer

catoutthebag

Hi

I will be a first time buyer later this year. I know the basics but feel quite lost.

I have all bank statement prepared. I know I have to get certain certificates from HMRC.

I have enough for deposit and some of the fees and furniture and know which areas I am looking at.

My queries

1) is there anything else I should be doing or should I just concentrate on the next few months saving before proceeding further?

2) ideally I'd like to put down a 15% deposit. ..but if I want to move out sooner it will be 10%....can you put down odd numbers like 12, 13%? Or should I stay at home til the end of the year til I have 15 or maybe a little more?

3) are prices higher in summer? (Intended move time)

4) I know I'll need a broker - where can I find a good one?

5) is stamp duty exempt under 125k and 1% to 250k. ..I know there were some changes?

6) being self employed I worry about repayments during lean times but I may get a lodger. Would a lodger payment be counted and taxed as self employed income?

7) looking to set aside 3-4k in fees including stamp duty on properties from 125-140k and 3-4k all furniture (ikea and ebay)...do these sound sufficient?

I'm sure there's more I could ask. These are preliminary questions or concerns.

Thank you

ACG

1)Ensure you have 3 months bank statements (personal and business), 1-3 years SA302s you can get these from HMRC. The more you have the more options are available.

2) You can put down 10.1% if you like.

3) Not that im aware of.

4) Family/friends recommend anyone? Generally speaking avoid estate agent based brokers.

5) Yes.

6) No

7) Should be plenty.

catoutthebag

Thanks for that

Would I still need an accountant to produce certificate of earnings or would the SA302 do?

kingstreet

5. Stamp duty is £0 - £125,000 nil

From £125,001 to £250,000 it's now 2% on that band.

catoutthebag

Thought there was a change

Oh dear MORE saving required from first time buyers

kingstreet

There's now no stamp duty on the first £125,000, so in the band above that you pay 2%.

Previously, on a £150,000 property you paid £1,500, now you only pay £500.

At £250,000 you'd pay the same, £2,500 under both the old system and the new.

catoutthebag

Thst sounds good. ..nice grand saved!

Soooo many other fees though when I look through the guides. ...any I can do without. ..or get cheap?

kingstreet

Fees & costs will vary by your choice of lender, mortgage product and solicitor. It's difficult to speculate with any degree of accuracy.

For example, there's about £150 difference in the cheapest and dearest local search and that depends wholly on where the property is located.

catoutthebag

I've done some quick searches in preferred areas with costings

I'm looking to put a max. 12.5% deposit on a 135k sale so looking at properties up to 150.

Loads need work. ..like some need basic re decor (floors and walls) throughout while others need that plus new kitchen and bathroom.

Quite frustrating

If this stays the same I either

- look at other area that are less desirable with the same property type and size but more ready to move

- or reduce deposit to 10% which would still only leave me around 3k decoration (fine for minor but I guess not enough to add a cheap new bathroom and kitchen)

I'm talking terraces and semis

Any thoughts or input?

I'd have deposit/fees/furniture cash by may/June. ..at what point do I try for a mortgage application?