Would it be reckless to sell my house in Leeds and return to renting it? | mortgage

Q After working in Leeds for a few years, I’m contemplating freelancing and transferring to a brand new metropolis. I’ve longed for change and this feels just like the problem I want. Nevertheless, evidently in doing so I should say goodbye to dwelling possession and return to renting as soon as once more. My present fixed-term mortgage expires in November this 12 months. As I perceive it, a freelancer must have two to a few years of earnings historical past to have the ability to apply for a mortgage. Is that this the case and do I promote a home that I purchased so exhausting and return to hire once more in the price of residing disaster when the rents are this excessive? Any ideas or recommendation could be extremely appreciated.
RW

A Sure, you’re proper in considering that any self-employed individual, together with freelancers, contractors, unbiased merchants, and small enterprise house owners making use of for a mortgage, ought to present proof of at the very least two years of normal earnings together with statements akin to: in addition to two if not three self-assessment tax varieties for the total tax 12 months. This eliminates taking out a mortgage for those who determine to promote in Leeds and transfer to a brand new metropolis, and it additionally means you must return to renting.

It may be troublesome to make so many main life modifications without delay. Would not it’s higher to do these progressively? For instance, you can provide up your present job and begin freelancing, however keep in Leeds for so long as it takes to construct the proof of earnings you will must get a mortgage in a unique metropolis. That approach, you will additionally discover out if freelancing will give you the results you want. If not, you possibly can return to being an worker however transfer to a brand new metropolis by making use of for a job there.

Another – in case you are keen to go away Leeds – could also be to carry on reasonably than hire out your own home. This contains both getting permission out of your present lender or switching to a mortgage to purchase. However I am not satisfied this can be a smart choice in case your new metropolis goes to be miles away.