Knowledge Centre
Find the meaning of various terms related to renting & letting here.
When renting a new home, there's more to consider than simply picking a property and moving in. Especially when you're searching for a rental for the first time, there are several things to keep in mind. If you're new to the world of renting, you'll likely come across terms you're not familiar with, such as delivery condition, rent protection, and the rent tribunal. These are terms you really should know when you're renting a place on your own, as it's likely you'll deal with one or more of these aspects.
Employer's Declaration
What does this entail?
During your search for a new home, you'll face several choices. Will it be a house or an apartment? Do you want 3 or 4 extra rooms? But perhaps the most important choice is: will you buy or rent? This decision depends on various factors, but perhaps the most crucial is your financial capability. If you choose to buy, you'll need to deal with a mortgage and an employer's statement. Here you can read more about what the employer's statement involves and how to request and submit it.
Contents of the employer’s statement
When you finally have your ideal home in sight and plan to pack your moving boxes soon, you’ll need to handle a few administrative tasks as well. If you ultimately decide to buy a house, you’ll apply for a mortgage. This mortgage application isn't accomplished with just a simple mouse click. You’re required to provide several documents, including the employer's statement. But what does that entail?
The entire mortgage process involves various financial aspects, which are precisely what the employer's statement covers. Your employer's statement includes (among other things) information about your income and employment. You will need to attach a copy of your most recent payslip. This payslip and your employer's statement must match concerning the employment start date and addresses.
Purpose of the employer’s statement
Providing these details to the mortgage provider gives them a clearer picture of your financial capacity. Based on this information, they determine if you can manage the monthly mortgage payments without falling into debt. Furthermore, this statement is used to calculate the maximum mortgage. Simply put: the lower your income, the lower the mortgage. A mortgage provider wants assurance that the mortgage will actually be paid off.
Requesting the employer’s statement
As suggested by the name, you need to request this statement from your employer. Your employer has the insight into the details that need to be included in the statement. If you work at a reasonably large company, you can often contact the Human Resources or personnel department for these kinds of forms. Most companies have their own employer's statement. If not, you can also find a general employer's statement online. However, do check this first with your own employer.
Once you are almost certain that you will purchase the property in question, it's best to pursue obtaining this statement as soon as possible. With some employers, it might take some time to complete it. Without an employer's statement, you cannot apply for your mortgage. Ensure you take this step in time.
No permanent contract
If you do not have a permanent contract, you can fill in an intention statement. This is a part of the employer's statement for people not yet in permanent employment. In this statement, your employer can indicate their intention to eventually offer you a permanent contract if your work remains satisfactory. For a mortgage provider, this could still be a deciding factor to increase the mortgage.