Cashback Deals for Contractor Mortgages from Halifax

Cashback Deals for Contractor Mortgages

Cashback Deals for Contractors

The Halifax have just reported that they are re-launching their special cashback deals for first time buyer contractors.

The deal is that first time buyers will get 1% of the amount they have borrowed deposited into their bank accounts. That will take place within 30 days of the contractors finalising their mortgages.

So,if a contractor borrowed £200,000, he, or she, would get £2,000 put into their account by the Halifax.

Cashback with Contractor Mortgages

Cashback with Contractor Mortgages of 1%

There is a maximum of £2,000.

Special Deal for Contractors

This is a special deal just for contractors.

After being initial nervous about loaning to contractors, more and more lenders are realising what a lucrative market loaning to contractors has become.

Those first time buyers who can take advantage of the Halifax’s offer don’t have to show a track record of contracting and earning like they used to have to do.

All they need to show is a copy of their contract.

Contractor Mortgage Offer

Their mortgage offer would be based on their daily rate annualised, i.e. their weekly rate x 48 times 3 or 4 or 5.

Contractors are becoming more and more popular with mortgage lenders.

They are getting more and better and better offers from them.

The good track record of other contractors who took up specialist contractors mortgages has helped here.

EU Referendum

The market is still looking pretty good with the lowest interest rates  on record.

Contractor Mortgage Quote

Contractor Mortgage Quote at best rates

House prices are likely to rise once the uncertainty of the EU referendum is over – especially if it is a vote to stay in.

Markets don’t like uncertainty so the mortgage market will be hoping for business as usual after the EU vote with an increase in sales and house prices likely.

Contractor Mortgage Information Pack

To get your information pack on the Halifax’s new offer on cashback deals to contractors just fill in the short form at Specialist Contractor Mortgage Information.

Best Deals Around for Contractor Mortgages

Best Deals

Best Deals

Specialist Contractor Mortgage Brokers offer the best deals for contractors.

Those specialist brokers have multiple lenders in two that they can approach on behalf of the contractor to get the best deals available for them.

Gone are the days when contractors were told by banks and building societies that they must produce three years worth of accounts and would get mortgage offers based on their director’s salary rather than their daily rate.

Contractor Mortgage Quote

Contractor Mortgage Quote at best rates

That would come as a shock to contractors who expected the red carpet to be let out for them on he back of the huge amounts of money they were now earning.

I say ‘gone are the days’ but if a contractor walked into a bank or building society on the high street, even now, that is exactly what they would be told.

That is why contractors use specialist broker who specialise in getting contractors mortgages with the best deals possible.

Best Deals Available for Contractors

So, what are the best deals available, at the moment ,through these specialist brokers?

There are 3 that catch the eye.

Firstly there is a 2-Year Tracker Mortgage where the Loan to Value is 60%, i.e. you need a deposit of 40%.

That’s at a rate of just 0.79% plus base rate (currently 0.5%). That ends at the end of March in 2018.

Then there is the 2-year fixed loan at 1.8% where a deposit of 25% is needed. Again that runs out at the end of March 2018.

Finally there is the 2-year fixed loan at 1.89% plus base rate (currently 0.5%). That runs for two years and the deposit needed is only 10% of the loan value.

Cheap Mortgages for Contractors

Mortgage have never been so cheap – especially for contractors.

IT Contractor Mortgages interest rates

IT Contractor Mortgages offers

Mortgage lenders used to charge them a premium before the advent of specialist mortgage brokers.

Now those specialist brokers can get contractors mortgage offers based on their daily rate annualised – with only their contract as proof of earnings.

What’s more they can get mortgage offers on the same day as they apply.

Indeed, first time contractors can get a mortgage offer on their very first day on their very first contract.

To get further info just fill in the form here and a specialist broker will be in touch.

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Comments

Contractor Mortgage Offers Based on Contract Value

Contractor Mortgage Offers at best rates

Contractor Mortgage Offers

Most lenders don’t understand contractors when making contractor mortgage offers. They don’t know how they operate.

They should, as most of them employ heaps of contractors in their IT departments and other departments.

However, those at banks and building societies who are the ones who decide if contractors should get mortgages are not the same people who interact with contractors in their computer departments.

Best Contractor Mortgages

Best Contractor Mortgages Rates & Offers

Contractors Risky to Lend To

From their point of view contractors are a big risk.

As they don’t have permanent (and secure) jobs they need to show a track record.

So, they ask to see 3 or more years worth of accounts.

Mortgage Offer Based on Director’s Salary

Now, what they are used to dealing with, when they make their mortgage offers, are salaries.

They then make an offer based on a multiple of a person’s salary.

They get the contractor’s accounts and peruse it for something they know.

“Ah, there it is” they think. “There’s the director’s salary. We will multiply that by 3 or 4 or 5 and make the contractor an offer based on that.”

The contractor would have been better to try to get a mortgage before he turned contractors.

Specialist Contractor Mortgage Brokers

Contract Based Mortgage Offers

Contract Based Mortgage Offers from Specialist Brokers

However, in the past few years, specialist contractor mortgage brokers have managed to convince some lenders that the contractor market could be a lucrative one for them.

They convinced one or two lenders to give it a go and lend to a few contractors.

The results were good. The contractors paid their mortgages regularly and didn’t default.

So, they gave out more and more mortgages.

Daily Rate Annualised

They based these mortgage offers on the contractor’s daily rate annualised rather than their director’s salary.

They also only needed to see the contract as proof of earnings.

In the beginning the lenders were quite conservative when lending to contractors.

However, they gradually relaxed once they saw that contractors were actually quite good payers.

Despite the uncertainty of working as a contractor, they were able to organise themselves into making regular payments even when they were out of work.

More and More Mortgage Offers for Contractors

As a result, specialist contractor mortgage brokers are able to get more and more mortgages for contractors from more and more lenders.

What’s more, it is at high street rates or sometimes better.

Every so often they get a special mortgage offer just for contractors.

Specialist Contractor Mortgages

Specialist Contractor Mortgages brokers

Contractors now have access to a growing number of lenders and a growing number of mortgage offers.

The process is pretty quick too.

You can normally get contractor mortgage offers on the very day you ask for one, providing you have all the details and could, potentially, be able to move into your dream house anywhere between 2 and 6 weeks after you sought the offer.

Applying for a Contractor Mortgage

To find out more, or to apply, just click on Contractor Mortgage Application and fill in the form there.

Contractor Mortgages Lender Allows for Breaks Between Contracts

Contractor Mortgages Lender

Contractor Mortgages Lender

There has been a major new breakthrough in the contractor mortgages lender market with the entry of a brand new lender.

It used to be that it was very difficult to get a mortgage if you were a contractor.

Many contractors, with their new contract rates, double what the earned as permies, expected to be welcomed with open arms by high street banks and building societies.

However, they were seen as risks by them. Contractors had to produced three years of accounts which scuppered new contractors for several years.

Specialist Contractor Mortgages

Specialist Contractor Mortgages brokers

I know. It happened to me when I first started contracting. I was shocked.

Offer based on Director’s Salary

What’s more they only offered you mortgages based on a multiple of contractors’ director’s salary.

As we all know contractors like to keep this as low as possible. They don’t want to hit the upper rate of tax and so take much of their money in dividend payments.

You would have been better off applying for a mortgage as a permie before you went contracting.

Contractor Mortgage Brokers

However, in the past decade specialist contractor mortgage brokers have sprung up.

They have convinced mortgage lenders to loan to contractors.

Contractors could now get mortgage offers based on their daily rates instead of director’s salary

They could also get mortgage approval with just their contract as proof rather than having to produce three years worth of accounts.

Many contractors are taking advantage of these offers obtained through these specialist mortgage brokers.

Contractor Mortgages UK

Contractor Mortgages UK based on daily rate annualised

This was much better for contractors – although the lenders were still a little conservative.

Bluestone Mortgages

Now, a new lender, Bluestone Mortgages, backed by the private equity arm of Lloyd’s Bank, have come up with a mortgage much suited to contractors.

This new flexible contractor mortgage would suit those contractors who like to take time off between contracts.

Even more importantly, it will suit those forced to take time off between contractors.

Many a sleepless night has been spent by contractors who have all their bills to pay whilst not knowing when they will get their next contract.

Breaks in Contract Work

Bluestone Mortgages are showing a great understanding of the contracting profession.

Previously contractors would find it difficult to get a mortgage if they had any break in contract work in the past year.

Now Bluestone Mortgages will allow up to a 6 month break in the past year.

They will also take a flexible view of any missed payments that are on a contractor’s credit file.

Knowing how contracting works they are even accepting the odd serious credit transgression showing on the contractor’s credit file.

Best Mortgage Deals for UK Contractors

Best Mortgage Deals that UK contractors can get

Major Breakthrough

This is great news for contractors and a major breakthrough in the specialist contractor mortgage market.

This new contractor mortgages lender is the perfect fit for contractors of any mortgage lender so far.

To find out more from the specialist contractor mortgages broker who negotiated this deal with Bluestone Mortgages simply fill in the form below and someone will be in touch.

Please click on Contractor Mortgage Application and fill in the form there.

Favourite Contractor Mortgages Brokers

Favourite Contractor Motgages Brokers

Favourite Contractor Mortgages

My favourite contractor mortgages brokers are those that are specialists in the contractor market.

These guys didn’t exist till ten years ago.

Contractors always found it difficult to get mortgages.

When they went in to see high street banks and building societies, with their new-found wealth, they expected to be welcomed with open arms.

Favourite Contractor Motgages Brokers

Favourite Contractor Mortgages Brokers for deluxe mortgages

Favourite Contractor Mortgages

Favourite Contractor Mortgages from specilalist contractor mortgage brokers

Instead, it was just the opposite.

Contractors Too Risky To Loan Money to

The banks and building society managers saw them as a big risk. They didn’t have steady income like a permanent employee.

They saw them as so risky that they wanted to see a track record.

They wanted to see three years worth of accounts.

That meant that you had to have been a contractor for well over three years to have those.

Contractor Mortgage Offer Blow

Then, if they managed to pass that obstacle, they were hit with a blow to the solar plexus.

The mortgage offer they got was just a multiple of their Director’s salary.

Favourite Contractor Mortgages

Favourite Contractor Mortgages from specialist contractor mortgage brokers

Most personal service company contractors keep that deliberately low. They want to take their income in dividends, which are taxed at a lower level.

This is what happened to me when I first wanted to buy a house. I was  sent packing and told to come back in a few years.

Even now, if you walk into a high street bank, or building society, this is the response you will get.

Specialist Contractor Mortgage Brokers

Luckily, with the advent of specialist contractor mortgage brokers, contractors can now get proper mortgage offers.

Contractors can get the best mortgage offers and the best interest rates through them.

There was a huge gap in the market with the growth of the contracting market in the UK.

Contractors were on the outside looking into the deluxe mortgage market.

Those that took on morgages when they were permanent employees were the lucky ones.

Specialist Mortgages for IT Contractors

However, ten years ago, one mortgage broker convinced one mortgage lender to take a chance and loan money for mortgages to a few IT Contractors.

That worked, so they loaned more IT Contractors money for mortgages.

Instead of being a risk, these IT Contractors paid up their monthly mortgage instalments regularly and had a lower rate of default than on the general market.

Contractor Mortgage Quote

Contractor Mortgage Quote at best rates

As a result, this specialist deluxe contractor mortgage broker got more and more credibility with more and more lenders. They were falling over themselves, then, to loan to contractors.

Mortgages for All Contractors

A couple fo years ago, the mortgage lenders expanded the market to all contractors.

Now, there are more and more great deluxe mortgage offers for contractors from more and more lenders through these specialist contractor mortgage brokers.

As I said, the favourite contractor mortgages are got by those mortgage brokers specialising in getting contractors mortgages.

They can get contractors lower interest rates and higher mortgage offers than contractors could get on the general mortgage market.

The Best Contractor Mortgages

The great news is twofold.

Firstly, contractors can get mortgage offers based on their daily rate annualised rather than using their Director’s salary.

The mortgage lenders take contractors’ weekly rate and multiply that by 48 for a contractor’s annual salary.

They then multiply that by 4 (or even 5 sometimes) to get the mortgage offer they make.

Using Your Contract as Proof of Income

The second great piece of news is that the best mortgage lenders don’t need to see three years worth of accounts before making a mortgage offer to contractors.

Mortgage Brokers for Contractors

Specialist Mortgage Brokers for Contractors in the UK

They just need to see a contractor’s contract ss proof of income.

Indeed they can get a first time contractor a deluxe mortgage offer on the very first day of his, or her, first ever contract.

The favourite contractor mortgages brokers in the contracting market are those that can get the best offers for contractors.

To find out more, or to apply for one of these top class mortgages from the specialist brokers, just click Favourite Contractor Mortgages Application and fill in the form.

5% Contractor Mortgages Deposits Using Help to Buy

5% Contractor Mortgages Deposit

5% Contractor Mortgages Deposits

5% Contractor Mortgages Deposits are now available to contractors using the Government’s Help to Buy mortgage scheme.

Previously, first time buyers, including first time contractors, were priced out of the market as lenders wanted 25% deposits.

They were spooked by the great banking crisis of 2007/8 and were unwilling to lend except to just the very safest borrowers.

As first time buyers are the ones who keep the cogs of the housing market wheels running, it meant that house prices were stagnating.

New Contractors Looking for Mortgages

New Contractors Looking for low-interest Mortgages

Help to Buy Mortgages for Contractors

The Government’s Help to Buy scheme kick-started the property market.

They guaranteed 20% of the loan when someone wanted to buy a house. That meant that the buyers, including contractors, only had to come up with 5% of the money.

That meant that a house had to fall by 25% in value before the high street bank or building society took a hit.

It wasn’t the Government who loaned the money to the borrower. It was the lender that did that.

All the Government did was to guarantee 20% of the loan.

First Time Buyers / First Time Contractors Took Advantage

Of course, the Government knew that if first time buyers, like first time contractors, came onto the market again it would send house prices higher – so it would never cost them a penny.

This was indeed what happened.

Borrowers were happy as it meant that, as they just had to stump up the 5% contractor mortgages deposit – which they could afford.

Lenders were happy as a house would have to fall in value by more than 25% before they took a hit.

The Government were happy as there was now a feelgood factor in a rising housing market which helped get them re-elected in 2015.

5% Contractor Mortgage Deposits via Help to Buy scheme

5% Contractor Mortgage Deposits from Help to Buy scheme

Rising Housing Market for Contractor Mortgages

The great thing about it for them was that it didn’t cost them anything. It was a very clever scheme.

The rising housing market took the risk of losses away from them as it meant meant that those houses and flats, where they guaranteed the 20%, rose in value well away from the threshold where they would lose out if someone defaulted on their mortgage.

That’s the beauty of the Help to Buy scheme. No one loses.

Specialist Contractor Mortgage Brokers

Contractors who want to take advantage of the Government’s Help to Buy scheme and the 5% contractor mortgages deposit should use a specialist contractor mortgages broker.

If they don’t, they risk being asked to provide three years worth of accounts and would get their offers based on their Director’s salary if they are a personal service company contractors.

By using a specialist contractor mortgages broker, all you have to provide is a copy of your contract as proof as earnings.

You will also get a contractor mortgage offer based on your daily rate annualised. they assume you work 48 weeks of the year and the mortgage lender will loan you 4 times your annual salary – or maybe even 5 times it.

Help to Buy Mortgages for contractors

Help to Buy Mortgages for UK Contractors

Contractor Mortgage Deposits

Obviously, the more deposit that you can put up the better the interest rates you can get.

However, those specialist contractor mortgage brokers can often get contractors mortgage interest rates at less than the market rate.

To find out more about 5% contractor mortgages deposits using Help to Buy, or to apply, please click on Contractor Mortgage Application and fill in the form there.

95% Mortgages for Contractors with just 6 Months Contracting

6 months contracting experience

6 Months Contracting

There’s a new lender in the contractor mortgage market – and they’re lending to contractors with as little as 6 months contracting experience. Their name is Buckingham Building Society.

To get a 95% mortgage contractors usually have to have two years experience, at least, as a contractor.

They also have to have a minimum income of £300 a day because of the extra perceived risk that lenders see with contractors.

Best Contractor Mortgages

Best Contractor Mortgages Rates & Offers

Buckingham Building Society and Contractor Mortgages

However, the Buckingham Building society has cut through that. It is offering its mortgages to new contractors with just 6 months experience as a contractor.

Also, there’s no minimum daily rate needed. They will consider all contractors regardless of their contract rate.

Their mortgage offer will be based on the contractors’ daily rate annualised, i.e. their weekly rate multiplied by 48 to get their annual salary and then multiplied by up to 5 again to get the mortgage offer.

There’s no need for contractors to have to provide accounts. All the proof needed is the contractor’s contract.

Specialist Contractor Mortgages

Specialist Contractor Mortgages brokers

Specialist Contractor Mortgage Market

More and more lenders are getting into the specialist contractor mortgage market.

They all used to think it was too risky.

One building society was convinced by a contractor mortgage broker to dip their toes in the water to see if contractors were a good risk.

It all worked out well. The contractors kept up their payments even when out of work and they did not default on their mortgages.

This gave the specialist contractor mortgages broker a lot of credibility and so more and more banks and building societies started to loan to contractors.

The Buckingham Building Society is just the latest.

Contract Based Mortgage Offers

Contract Based Mortgage Offers from Specialist Brokers

Better Mortgage Offers for Contractors

Indeed it looks as if more and more banks and building societies want to hitch a ride on this gravy train.

As contractors give the contractor mortgage brokers more and more credibility, by keeping up their payments, expect better and better mortgage offers for contractors.

Buckingham Building Society are making mortgage offers to contractors, now, who have just 6 months contracting behind them.

Expect there to be more and more offers like this as the banks and building societies see lending money to contractors as not very risky at all.

To take advantage of this offer from the Buckingham Building Society, or other contractor mortgage offers, contact a specialist contractor mortgage broker by clicking on Contractor Mortgage Application and fill in the form there.

Contractor Buy To Let Action Needed Now

Contractor Buy to Let investment

Contractor Buy To Let

Contractors got off lightly in the Autumn Statement.

Chancellor Osborne didn’t carry out most of the threats he made, beforehand, or he at least watered them down.

However, contractors who have invested their money in property have not fared so well. They are about to be hit by the Chancellor next year.

Buy To Let Purchases

Buy to Let purchases went up by 36.4% in September compared to August.

That’s despite the withdrawal of interest mortgage relief by the Chancellor.

Costs will go up a lot from April next year which is when the levy gets rolled out.

Contractor Buy To Let

Contractor Buy To Let

Let to Buy Stamp Duty Rises

The cost of stamp duty for a Buy To Let of £250,000 will go up from £2,500 to £10,000.

That’s four times what it was before and a hefty increase.

So, how much of a problem is this for Buy To Let contractors?

Freelancers have traditionally invested in the stock market and property to try to use their contractor earned money to try to make more money.

This is unlikely to change.

Mortgage Interest Relief

However, smart contractors will be making their Buy To Let purchases ahead of next April when the change comes in.

This will save them thousands of pounds in stamp duty.

As regards Mortgage Interest Relief, here is how does the change will impact on contractors.

At the moment, contractors only pay tax on their rental income after deducting their monthly interest payments and some allowable expenses.

Tax will then paid on the profit at the contractor’s highest marginal rate of income tax.

So, it looks like UK contractors, who are heavy investors in property, will be stampeding to buy new properties, using Buy to Let before next April.

The sooner they start the better as everyone know how long it can be from staring a property search to actually completing a deal.

There won’t be a better time for Contractor Buy to Let opportunities.

Contractors Buying Property

Contractors Buying Property for investment

Specialist Contractor Mortgage Brokers

Contractors are much better using specialist contractor mortgage brokers when buying a property. They can get contractors better rates.

They can get them offers using their daily rate annualised rather than their Director’s salary which a hight street bank or building society would do.

Offers are all on production of your contract instead of the three years worth of accounts that the banks and building societies would ask for.

To find out more info from the specialist contractor mortgage  broker, or to apply, just click on Contractor Mortgage Application and fill in the form there.

40% Deposit Interest Free Present to Londoners from Government

40% Deposit Interest Free

40% Deposit Interest Free

Londoners are to receive a 40% Deposit Interest free from the Government according to an announcement in the Autumn Statement for Chancellor George Osborne.

That was a major rabbit that he pulled out of his hat, completely out of the blue.

This is under the Help to Buy scheme.

Help to Buy Scheme

The Help to Buy scheme has worked very well outside London but not very well in London.

The Government offered 20% deposits interest free to those wanting to get on the property ladder.

However, this was not much use in London where property prices have soared out of all recognition.

A nice flat in a decent area could cost you close to a million pounds.

So, offering them a 20% deposit wasn’t going to do the trick.

IT Contractor Mortgages

Even IT Contractors, who are pretty well paid, would be struggling to buy a first home in London.

A contractor who earned £400 a day would be able to borrow close to half a million using specialist contractor mortgage brokers.

However, he, or she would be left scratching around, even at that, for a home in a decent area.

So, now contractors in London, who wish to purchase a new home, will qualify for this 40% deposit.

5% Deposit for UK Contractors

Wit this new initiative, or latest version fo the Help to Buy scheme, contractors would need to stump up jus a 5% deposit and the Government will stump up another 40%.

This will leave lenders just needing to stump up a further 55%.

Because the lenders are loaning just 55% it means that they are likely to loan money at lower rates than a lender asked to stump up 90% or 95%.

40% Deposit Interest Free laons for London contractors

40% Deposit Interest Free laons for London contractors

Nationwide Mortgages Just for Contractors

It’s expected that the Nationwide Building Society are going to want to have a piece of this action.

One specialist contractor mortgage brokers have a current deal with them to get contractors mortgages at great rates.

If contractors walked into a high street building society, or bank, they would have to produce three years worth of accounts to get a mortgage offer.

That mortgage offer would be based on a multiple of their Director’s salary.

That’s not much use.

This specialist contractor  mortgage broker has a deal with the Nationwide specially for them that provides mortgage offers to contractors just on production of their contract.

House Prices to rise for for UK Contractors

House Prices for UK Contractors

Mortgage Offer based on Daily Rate

Furthermore, the mortgage offer will be based on their daily rate annualised.

If their daily rate was £400 a day, the offer would be likely to be £400 x 5 x 48 (weeks) x 4.

It is expected that Nationwide will give a new deal to London contractors with a rate as low as 1.59% fixed for 2 years with a £999 arrangement fee.

For more details on this , or to apply, all you need to do is click on Contractor Mortgage Application and fill in the form there.

House Prices to Rise 20% in Five Years

House Prices to rise for for UK Contractors

House Prices for UK Contractors

The fear, for UK Contractors of falling house prices, once interest rates go up, has subsided somewhat for UK Contractors.

It’s OK securing a fixed low-interest mortgage, while you can still afford it,  before interest rates go up, but there is the fear, for contractors, that they may be buying at the peak of the boom.

After all, if there are fewer people able to afford to buy houses, because they are now more expensive to buy, then the economic laws of Supply and Demand kick in.

Interest Rates to Stay Low Longer

However, there are two mean reasons for believing that their fear is misplaced.

Firstly, statements from the Bank of England are now suggesting that interest rates will stay low for a lot longer than originally believed.

Indeed, the Bank had been saying that they expected to be looking closely at interest rate rises by the end of this year or in the first quarter of next year.

Now they are saying that interest rates are likely to stay on hold for much longer – maybe another 18 months.

This is because there has been a drag on the UK economy from problems in China and the Euro area.

Contractor Mortgages Safer

By now, the economist were expecting the UK economy to be roaring along with inflation starting to bite.

However, the UK is predicted this year to have non-inflationary growth of around 2.6% and 2.5% next year.

Inflation has virtually disappeared.

It could be some time before we get inflation in the economy to a degree that causes the Bank to increase interest rates.

House Prices to Rise

Also, a report out this week predicts that house prices in the UK will rise by an average of 20% over the next five years – and that would be even with expected interest rate rises.

Here’s the table of expected average house price rises by region of the UK.

21.6% – South East

21% – East

20% – SouthWest

17% – East Midlands

16.5% – West Midlands

15.3% – London

14.8% – Wales

14.2% – Scotland

14.2% – Yorkshire and Humber

12.7% – North West

12% – North East

Contractor Mortgages

It looks like even London, were house prices are already high, they will continue to rise in a non-inflationary environment.

If inflation stays low, as it seems to be doing at the moment, these could be real rises in house prices rather than just inflationary rises.

This has a knock on effect for specialist Contractor Mortgages

Specialist Contractor Mortgage Brokers

Specialist Contractor Mortgage Brokers can get contractors mortgages without having to produce three years’ worth of accounts or based on Director’s salary as would happen if contractors walked into a high street bank or building society.

They can get mortgages for contractors based on their daily rated annualised (based on 48 weeks a year) and on just the production of their contracts.

For more info, or to apply, just  click on Contractor Mortgage Application and fill in the form there.

Cheaper Contractor Mortgages Could Be Here for 18 Months

Cheaper Contractor Mortgages

Specialist Contractor Mortgages Rates

It was thought that Bank of England interest rates would soon be on the way up, pushing up the price of contractor mortgages.

The Governor of the Bank of England had hinted that they could be going up by early next year.

He had said that late this year, they would be monitoring the situation closely.

Interest rates on contractor mortgages had started to rise in anticipation fo a rate rise coming within months.

Mortgage Rate Increase Unlikely

So, the contract Mortgage market got a pleasant surprise when the Bank of England announced that the first increase was unlikely to come before May 2017.

That means that we could have low mortgages rates for 18 months or maybe even more.

Cheaper contractor mortgages could be here for a while.

The Bank of England had expected that inflation would be starting to rise by now.

However, inflation is keeping itself very low at around zero.

This is because problems in the world economy, and especially in the Euro area and China, are keeping the UK economy from roaring ahead.

Lower Economic Growth Keeping Interest Rates Down

Indeed the Bank decreased, slightly, their estimates for growth in the UK economy this year and next year.

The Bank has taken down its predicted growth in the economy from 2.7% to 2.6% this year and from 2.6% to 2.5% next year.

Normally, at this stage in the cycle, the economy would be roaring ahead with 3% to 4% growth and with inflation starting to rear its head.

However, deflationary conditions in the world economy are keeping the UK to non-inflationary growth levels.

Indeed, the Bank said that inflation would only be 1% by the end of next year – hardly the runaway inflation that could cause interest rates to rise.

This is very good news for contractors and the specialised contractor mortgages market.

Mortgages for Contractors to Remain Cheap

According to one mortgage broker, it could mean contractors getting even cheaper rates than before with the first interest rate hike perhaps 18 months away.

Currently, contractor mortgage rates are about as low as they have ever been – yet expect them to go even lower in the coming weeks as lenders adjust to the new scenario of low-interest rates for a longer period of time.

They will start to reverse te increases they had put on interest rates in anticipation of a base rate rise.

Cheaper contractor mortgages are on the way.

Better Mortgage Offers for UK Contractors

The advent of specialized mortgages for contractors, in recent years, mean that contractors can now get better offers than they used to get, at lower interest rates, and they don’t, now, have to produce three years worth of accounts.

They no longer get offers based on their Director’s salary.

That’s provided they use specialist contractor mortgage brokers rather than walk into high street banks or building societies.

Mortgage Offers for Contractors

Nowadays, contractors can get offers of 4 times their daily rate annualised – just on production of their contract. It’s taken that contractors work 48 weeks a year.

So, a contractor earning £500 a day gets £2,500 a week, or £120,000 a year.

With a mortgage offer of 4 times salary that equates to a potential mortgage offer of £480,000.

To take advantage of these lower rates, contact a specialist contractor mortgage broker for more info, by filling in the form below.

Please click on Contractor Mortgage Application and fill in the form there.

Contractor Mortgages Rate Rise Comes Ever Closer

contractor mortgages fixed rate mortgages

Contractor Mortgages Rate Rise

Today, the Bank of England decided to keep bank rates on hold, for now. However, the day is coming closer and closer when the Governor of the Bank of England will announce a contractor mortgages rate rise.

This would push up the cost of mortgages for UK contractors. Many smart contractors have been taking out fixed rate contractor mortgages while they still can.

However, already the cost fo fixed rate mortgages is starting to rise as lenders anticipate the next base rate rise.

Rate Rises for Contractor Mortgages

It was expected that the base rate rise would happen by the end of the year but it is more likely to be in the first quarter of next year before mortgage rates go up.

We have had record low-interest rates for six years now as the Government sought to fight the savage downturn. However, the downturn is over now and the next change in base rates will now be up. It is just the timing now.

As well as mortgage being more expensive for contractors when base rates do go up, they will also be able to borrow less.

Mortgages Expensive for Contractors

When base rates go up they can often go up rapidly in more than one hike. the reason is that they go up to stop inflation and to stop the economy overheating. However, it takes months for this to take effect and with the economy overheating even more, and inflation increasing, the Panel and the Governor of the Bank of England will keep looking for more rises.

This could make mortgages much more expensive for contractors – unless they take advantage of the current fixed rates on offer at specialist contractor mortgage brokers.

Many of those contractors on variable rate mortgages, who have been enjoying low mortgage rates for six years now, will get quite a shock when their monthly payments start to rise in maybe several chunks.

Fixed Rate Mortgages for British Contractors

It would be a good time for them to swap into a fixed rate mortgage. That would take away any nasty surprises that are likely to start in the first quarter next year.

However, it would be wise not to wait till then as the rates for fixed rate mortgages are likely to rise before then, in anticipation of base rate rise to come. The sooner they change over to fixed rate mortgages, the better, and the cheaper it will be for them.

To find out more, before a contractor mortgages rate rise, or to apply for a fixed rate contractor mortgage from a specialist contractor mortgages broker, just click on Contractor Mortgage Application and fill in the form there.

First Time Buyers Advantage | Cheaper to Buy Than Rent

Best Contractor Mortgages

First Time Buyers Advantage

There’s now a first time buyers advantage in the contractor mortgage market which is suiting first time buyers as well as all contractors looking for mortgages.

A survey by Halifax has revealed that buyers are £670 better off per year than those renting.

It was reported that the average monthly rent in June 2015 was £722 for a three bedroom property compared to a mortgage of £666 for the same size property.

Therefore the average first-time buyer’s monthly mortgage is 8% lower than the typical monthly rent.

Contractors Buying Property in London

Those buying in London could save up to a massive £81 per month this year, with the average mortgage cost being £1,338 compared to the average rental cost of £1,419.

The financial benefits of buying versus renting has made quite a leap in the last 6 years.

During the credit crunch buying was 16% more than the average rental cost, which meant you would be paying out £1,154 a year more on your mortgage compared to renting.

Buying Cheaper than Renting

So why in 2015 is buying cheaper than renting?

So, there is now a first time buyers advantage because of historically low mortgage rates

Halifax reported that despite the typical price of a three bedroom house rising by 25% since 2009, mortgage rates have plummeted.

The average mortgage rate was 4.92% 6 years ago in comparison to today’s average mortgage rate of 2.91%.

Contractor Mortgage Market Rates

At the beginning of 2015 rates were at a record-breaking low pushed down by the Bank of England’s base rate, which is currently hovering at 0.5%.

This resulted in a flood of competitive rates into the mortgage market, enabling Contractor first time buyers to secure a mortgage with a small deposit and record-breaking low mortgage repayments.

Although the Greek crisis seems to be putting pressure on the Eurozone, which could also be delaying Britain first interest rate rise in 8 years, media reports reveal that the prospect of a hike are immanent as the UK’s economy strengthens.

Some high street lenders are already preparing themselves with mortgage rates slowly creeping up.

However the Governor of the Bank of England, Mark Carney, has indicated that base rate rises will be a slow process and despite the forthcoming increase there are plenty of competitive mortgages deals to be found.

Buying Property vs Renting

Buying your first home is the biggest decision you will ever make.

Many first time buyers find the whole prospect rather daunting, with the Royal Institution of Chartered Surveyors reporting that just 1 in 5 young buyers find the mortgage process easy.

Therefore it is essential to seek professional financial advice and weigh up the pros and cons before committing to a property purchase:-
-Saving for a deposit can be a struggle but help is at hand. There are Government schemes that help you purchase your first home with as little as a 5% deposit. Help to buy ISAs will also be launching in the Autumn which will help you save your deposit.
-It’s a big commitment but once you have paid off your mortgage your home will be yours.
-Home improvements can be costly but they can increase the value of your property so it might be worth finding a project for your first home to help you move up the ladder later.
-If your home increases in value the equity may help you purchase a bigger property or fund your retirement pot.
-Buying can be cheaper than renting.
-If interest rates rise, your repayments will go up. It’s important to prepare for any rate rises and take advantage of cheap fixed rates whilst they last.

This is why there is a first time buyers advantage now.

Specialist Contractor Mortgages

Our partners are experts in helping Contractors to find a mortgage tailored to your unique needs and they have a wealth of experience and knowledge of contractor mortgages.

They are leaders in the specialist contractor mortgages market.

They can take the hassle out of finding the right mortgage rate for you. To find out more please click on Contractor Mortgage Application and fill in the form there.

Specialist Contractor Mortgage Deals – Nationwide to Offer Them

Specialist Contractor Mortgages

Contractor Mortgage Deals

Tony Harris is a supplier of specialist mortgages to the contractor market. It used to be that if a contractor wanted a mortgage, he, or she, would:-

1.  Have to produce three years worth of accounts

2.  Be given an offer based on your Director’s salary.

Still, to this day, if you walked into a hight street bank or building society, they would ask for the same.

Specialist Contractor Mortgage Brokers

Those contractors in the know, however, use specialist contractor mortgage brokers like Tony Harris to get the top contractor mortgage deals at  best contractor mortgage rates.

Tony has been getting great contractor mortgage deals from Kensington, Newbury, Furness and Kent Reliance.

Now, after seven years of negotiating Tony has managed to get a great contractor mortgage deal from the Nationwide – and at market leading rates.

UK Contractor Mortgages articles

UK Contractor Mortgages articles

He has done some business with Nationwide in the past but only on behalf of Umbrella Company contractors.

Limited Company Contractors

Now Nationwide has agreed to provide great contractor mortgage deals for limited company contractors. Indeed, they are offering them at the same great market-busting rates that they offer to permanent workers based solely on their contract rates.

Nationwide are prepared to offer those contractor mortgage deals to contractors in several professions including IT, engineering, oil and gas and interim managers as well as a host of others.

There is no minimum income requirement.

With these new contractor mortgage deals, Nationwide are expected to become the lender of choice for UK contractors.

Contractor Mortgage Offer

When they are working out their mortgage offer to you, Nationwide will take into account 80% of your contract rates over a 52 week period. That will give contractors a shedload of money for house buying purposes.

They’ll give you loans of up to 90% of the value of the property as a loan or 85% if you are remortgaging an existing property.

contractor mortgages

Cheap contractor mortgage deals

They have some really good specialist contractor mortgage deals on the table. These include a 10-year fixed rate mortgage. With interest rates due to rise this is the time to be taking one of those.

2-Year Fixed Contractor Mortgage Deals

Here’s what they are offering on 2-year fixed deals.

60% LTV – 2 years fixed at 1.49% with a £999 arrangement fee
75% LTV – 2 years fixed at 1.79% with a £999 arrangement fee
80% LTV – 2 years fixed at 1.89% with a £999 arrangement fee
90% LTV – 2 years fixed at 3.14% with a £999 arrangement fee

You don’t have to pay the mortgage arrangement fee up front as that can be added to the mortgage.

10-Year Fixed Rate Mortgage Deals

Here’s what they are offering for 10 years fixed rate mortgages, which could be just what you want with interest rates set to rise. These rates lead the market.

60% LTV – 10 years fixed at 3.14% with a £999 arrangement fee
75% LTV – 10 years fixed at 3.44% with a £999 arrangement fee
80% LTV – 10 years fixed at 3.69% with a £999 arrangement fee

If you sell your house and buy another one, you can simply carry these rates over to your next property.

Nationwide Tracker Mortgages for Contractors

Here’s what Nationwide offer for Tracker Mortgages.

75% loan to value – 2 year tracker at 1.44% (0.94%+BBR) with a £999 arrangement fee
80% loan to value – 2 year tracker at 1.94% (1.44%+BBR) with a £999 arrangement fee
85% loan to value – 2 year tracker at 2.69% (2.19%+BBR) with a £999 arrangement fee
90% loan to value – 2 year tracker at 3.49% (2.99%+BBR) with a £999 arrangement fee

All the above specialist contractor mortgage deals are available on purchase and remortgage.

Indeed, if you are remortgaging to the Nationwide, they will cover your legal and valuation fees which is a pretty good deal.

Contract and Address Details

If you want to apply for one of the above deals, Tony and his team will need:-

1.  A copy of your contract

2.  Proof of address details from your passport and a utility bill from the past 3 months

3.  Your personal and business bank account information from the last three months.

Having those together, when applying, speeds the process up a lot. The Contractor Buy To Let Market is also booming.

Contractor Mortgage Offer

When you contact Tony and his team you can get an offer in principle within an hour of you contacting him.

They don’t charge a fee which some contractor mortgage brokers do, so that will save you £500 or so.

To find our more, or to get a quote, simply click on Contractor Mortgage Application and fill in the form there.

Cheap Contractor Mortgage Deals End Comes Nearer

contractor mortgages

Cheap Contractor Mortgage Deals

We have had some of the best cheap contractor mortgage deals we have ever had over the past few years. Mortgage rates have been unbelievably low, historically, in recent years.

This was caused by the savage economic downturn and efforts by the Bank of England to boost the economy by keeping interest rates at their lowest rates ever.

However, that could be all coming to an end in the next few weeks.

Interest Rate Rises

Bank of England Governor, Mark Carney, has recently stated that he expected to be considering higher base rates by the year’s end.

That statement in itself is causing forward market interest rates to rise.

This is putting pressure on the fixed rates over 2, 3 and 5 years that banks are giving.

It seems that the cost of funding these deals has jumped by 10% in recent weeks. The banks won’t suck that up for too long.

Contractor Mortgage Rates

Lenders are expected to increase their fixed interest mortgage rates over the coming weeks hitting contractor mortgages hard.

Best Contractor Mortgages

Best Contractor Mortgages Rates & Offers

Low interest rates have been around for a while. If anyone wants to take advantage of cheap contractor mortgage deals then now is the time to do it.

We are unlikely to see such low-interest rates again – and they have just weeks, even days, to go.

The first tweaks to interest rates are expected to take place over the next week or two. This will just be the start.

Contractor Mortgage Market

The competitive contractor mortgage market has kept prices low but, with the cost of money that the banks can borrow rising, the dam is about to burst and banks and mortgage lenders will have to push rates higher very shortly.

Base rates have been at 0.5%, an astonishingly low-interest rate, for 6 years. This will never happen again.

They are expected to rise by the end of the year but fixed interest mortgages are already rising in anticipation of that rise. The cost of money is rising.

Long Term Fixed Rates

Those wanting longer term fixed rates need to get those now.

There has been a rush of mortgage applications over the last few weeks as house buyers rush to get those once-in-a-lifetime deals.

Cheap contractor mortgage deals are coming to an end. There are only days, or at most weeks, to take advantage of this.

Specialist Contractor Mortgages

Tony Harris has been getting contractors specialist contractor mortgages for years now. Through hin 95% contractor mortgages are now available for all contractors.

UK Contractor Mortgages articles

UK Contractor Mortgages articles

He can get them cheap contractor mortgage deals based on just their contract and with mortgage offers of up to 4 times their daily rate annualised (weekly rate x 48).

If contractors went to a bank or building society they would have to produce three years worth of accounts and get a quote based on their Director’s salary.

For more information click on Contractor Mortgages.

To find out more, or to apply before rates rise, just click on Contractor Mortgage Application and fill in the form there.

Contractor Buy To Let Mortgage Market Booming

Contractor Buy To Let Mortgage Market

According to figures out today the buy to let contractor mortgage market is going through the roof.

The Bank of England, and its boss Mark Carney, say that the Buy-To-Let mortgage market is growing at an appreciably faster rate than the ordinary market. It looks like Landlords see the property letting market as a great investment. They are piling in.

The same goes for the contractor buy-to-let mortgage market. Contractors are piling in too.

Contractors Investing in Buy to Let Property Market

They are looking for ways to make their money work for them. One of those ways, it appears, is to buy into the property market.

At these low-interest rates, they are able to get most of the money that they pay in mortgage payments back in rent. Sometimes they can even make a profit.

In later years, as rents rise, they can pull bigger and bigger profits from it.

However, the big gains from the contractor buy to let mortgage market are in capital gains.

Contractors Who Invest Wisely in Property

Those contractors who do well financially are those who make investments like these.

The contractors are earning money and their investments are making money too.

Many contractors with a few years experience are able to make more money from their investments than they make themselves.

Indeed, after a few good years, some contractors are able to get out and live on their investment income. They can then do what they like with their time.

Time for Contractors to Start Investing in Property

Normally we are talking about contractors who have been investing for 10 years or more successfully.

However, there is no time like the present to take that first step.

Tony Harris started the contractor mortgage market and has been getting British contractors 95% specialist contractor mortgages for years now.

He is able to get contractors mortgages based on their daily rate annualised and using their contract as proof rather than having to produce three years worth of accounts like you would if applying through a high street bank or building society.

Contractor Mortgages Based on Contract Rate

Indeed if you go through those you will get an offer based on just your Director’s salary, which makes it not worthwhile.

However, with Tony all you have to do is produce your contract.

He can get a new contractor a quote on the very first day of their very first contract.

Indeed, he has had contractors in their dream homes as quickly as two weeks after they started contracting.

He can also get them a contractor buy to let mortgage in pretty quick shape too.

Contractor Buy To Let Mortgage

To find out more about the contractor buy to let mortgage market click on Contractor Buy-To-Let Mortgages

To find out more, or to apply for a contractor buy-to-let mortgage, or indeed for any specialist contractor mortgage, just click on Contractor Mortgage Application and fill in the form there.

90% Contractor Mortgages with Cashback at Great Rates

90% Contractor Mortgages with Cashback

Since the Halifax made a special contractor mortgages with cashback offer through our contractor mortgages partner, dozens of first time buyers have taken advantage and shared tens of thousands of pounds at an average of £2,300.

They expect that the offer will come to an end shortly so it is important that contractors get in now if they want to take advantage of the offer.

Contractors have obtained some of the best rates on the market – and got their cashback too. The Halifax are making this contractor mortgages with cashback offer only through our partners, in order to get a one-off big boost to their mortgage business. The offer will disappear soon.

The cash is being given so that first time buyers can cope with the extra costs of moving in. The Halifax are giving cashback of 1% of the total mortgage costs up to £2,500 paid within a month of completion.

Contractor Mortgages with Cashback Rates

They are offering some great rates too for their contractor mortgages with cashback:-

90% for a 2-year fixed mortgage at 3.44%

85% for a 2-year fixed mortgage at 2.34%

80% for a 2-year fixed mortgage at 2.19%

60% for a 2-year fixed mortgage at 1.64%

Arrangement fees are £1,499 for all of the above.

That’s some pretty good rates especially as they can be locked in for 2 years.

Help to Buy Contractor Mortgages

You can also get contractor mortgages with no arrangement fee for smaller amounts borrowed.

You can also get a 95% contractor mortgage using Help to Buy. The deal is also available for new build and affordable housing.

It doesn’t include Buy To Let or mortgages of over £1 million.

Contractor Mortgage Application

You need to lock in this deal quickly though. Get an agreement in principle as soon as you can.

You need to have made a formal mortgage application before this deal ends. Our partners are ready to help you immediately.

Our partners can get you a quote on the every day you apply. If you get an AIP (Agreement in Principle) for the loan it will help when dealing with the estate agents. You may even get a better price than someone who doesn’t have one as you are ‘ready to go’.

Our partner started the specialist contractor mortgages market 10 years ago. Contractors used to find it difficult to get mortgages previously and had to produce three years worth of accounts and got an offer based on their Director’s salary – which made the offer very low.

Now, our partners can get them offer on production of their contract and at a multiple (up to 5 times) of their daily rate annualised ( x 48). They are happy to give you their expert advice free of charge.

Apply for Contractor Mortgages with Cashback

To find out more about the contractor mortgages with cashback offer or to take up the Halifax offer while you can, you should click on Contractor Mortgage Application and fill in the form there.

 

Tory Election Win Good for Specialist Contractor Mortgages Market

Tory Election Win Good for Market

Whether, you voted Tory, Labour, Liberal Democrat, SNP, UKIP, Green Party or you voted for no party at all, it can’t be denied that a Tory Election Win is going to be good for the Housing Market.

As that will be the case, a Tory election win will also be good for the Contractor Mortgages Market too.

Firstly, Labour’s Mansion Tax on properties over £2m will not now be implemented.

You may think that this won’t affect contractors too much but the price of houses and flats have gone through the roof in London, where a large percentage of contractors live and work.

London has become very much an international city and foreign buyers are pushing house prices higher there.

Supply and Demand for Property

Secondly, the Conservatives won’t be going on any public housing building programme that Labour might have done which would have boosted the supply of houses and flats on the market.

As those who know their economics know there is the Laws of Supply and Demand. This says that if you increase the supply of a commodity then the price will fall.

There are also no plans by the Conservatives to give planning permission for houses on green belt sites or even in brown field sites in major cities.

This will keep the supply of houses down as the population rises, mainly based on heavy immigration which is mainly in the London area.

So, in the next few years, the factors will not be in place for a major increase in the supply of housing to the market.

Therefore, as the demand for housing is increasing, the price of housing should increase too as the supply of housing is rising at a slower rate.

Specialist Contractor Mortgages

The Tory election win will have a knock-on effect on the specialist contractor mortgages market.

This has been healthy for some time now and there seems to be no reason to expect that to change in the ear future.

To find out more information about Specialist Contractor Mortgages brokers, or to apply for a specialist contractor mortgage, click on Specialist Contractor Mortgages

Contractor Mortgages | Which Contractor Mortgage?

Which Contractor Mortgage?

We are often asked which contractor mortgage should a contractor choose?

What most contractors do is walk into a high street bank or building society and ask for a mortgage. This is a huge mistake. They will tell you two things:-

1.  You need to produce three years worth of accounts

2.  The contractor mortgage offer will be based on a multiple of your Directory’s salary.

No matter which contractor mortgage you get it would be worse than if you would have got as a permanent employee.

Shock to Contractors

This will come as a shock to contractors – especially those that have been contracting for less than 3 years. Indeed, when I was told the above, a good few years ago, I just gave up for many years looking to own my own house.

I would have been better staying as a permie as I would have got a better mortgage offer. I wished that I had bought a house or flat PRIOR to becoming an IT contractor.

Of course, this was before the days of specialist contractor mortgages. Tony Harris started that market just over ten years ago.

He went to lenders and asked them to fund specialist mortgages for IT Contractors. Lenders were taken aback and shocked at his temerity in asking for long-term mortgages for people, i.e. IT Contractors, who had insecure jobs. This could be a disaster for them, they thought.

Which Contractor Mortgage for Tony

However, this could potentially be a very lucrative market for them as there were a growing number, now measured in the hundreds of thousands, of IT Contractors in the UK.

So, Tony managed to get one lender to dip their toe (the very edge of their big toe) in the water to test specialist contractor mortgages to see if it would work.

And work it did!

UK Contractor Mortgages articles

UK Contractor Mortgages articles

They found that IT contractors paid their monthly mortgage instalments at least as well as anyone else and didn’t default on their mortgages during hard times.

So, they started lending more IT Contractors money for specialist contractor mortgages. Then Tony started to get other lenders to loan money to IT Contractors after this initial success.

It meant that he was able to get better and better rates for IT contractors as the lenders fought each other to get into this new  lucrative market. Remember this when you are considering which contractor mortgage you should get.

Mortgages for All Contractor Now

Within the last couple of years Tony was able to get these lenders to extend loans to all contractors and not just IT Contractors.

The deal he has got with them is much better than the deal that contractors would get if they walked into a high street bank or building society.

The main points of the deal are:-

1.  Contractors would not need three years worth of accounts. All the proof they would need to offer contractors a mortgage would be the contractor’s contract.

2.  The offer would be based on the contractor’s daily rate annualised. That is Daily Rate x 5 x 48 x 4.

Contractor Mortgage Offers

They can now  get contractors mortgage offers on the same day that the contractor contacts them.

Indeed they can get first time contractors a mortgage offer on the very first day of their very first contract. It means that they can get the keys to their dream house approximately four weeks after their first day on a contract.

Indeed, in one case they got one first time contractor into his dream house just two weeks after starting his first ever contract.

Tony has so much credibility with lenders now that he can often get contractors mortgages at better than market rates.

Help to Buy Mortgages

With the advent of Help to Buy mortgages, he can get contractors 95% mortgages.

So, which contractor mortgage should you look for – one from a high street bank or building society – or one from a specialist contractor mortgage broker like Tony?

I think that one’s a no brainer!

To find our more about these specialist contractor mortgages click on Contractor Mortgage Application and fill in the form there.

Help to Buy ISA for First Time Buyers – Contractor Mortgages

Help to Buy ISA

Contractors have just had some great news from Chancellor Osborne in his 2015 Budget. He has created a Help to Buy ISA for first time buyers.

The Help to Buy scheme, brought in by the Government has been highly successful. It has provided the feelgood factor that the Government wanted going into the General Election in May.

Previously, lenders were asking for 20% and 25% deposits to first time buyers and they just didn’t have it. First time buyers are crucial for a healthy housing market. Their inability to get into the market was depressing prices.

The Government guaranteed 20% of the deposit which meant that those first time buyers were able to get 95% mortgage again. They did so in droves.

This helped to push house prices up which engendered the Government’s feelgood factor. This, in turn, has brought the Conservatives level with Labour in the polls.

New Help to Buy ISA

Now, the Government has gone further and created the Help to Buy ISA.

It enables first time buyers to be able to save tax-free for a mortgage deposit in an ISA. Not only that, for every £200 a first time buyer saves the Government will add a further £50.

That should help!

It means you are able to increase your deposit by 25%.

It’s s huge boost to first time buyers, including contractors taking out contractor mortgages.

Help to Buy ISA in the Autumn

Said Emilie Heaney, an expert on both the contractor mortgages market and the ISA for contractors market:-

“Contracting first time buyers will be able to start saving in these special ISAs in Autumn 2015. You will need an initial deposit of £1000 to open a H2B ISA and can use it to save for homes worth up to £450,000 in London and £250,000 in the rest of the UK.

“Your £1000 you will benefit from a £250 uplift from the Government.

“Overall this will be further positive news for the housing market starved of first time buyers with enough of a deposit to take that all important first step and should encourage a generation of new savers and we commend this to the house”.

To get in the queue for one of these new Help to Buy ISA products fill in the form here ISA Form

Rent to Own Scheme proposed by LibDems – Contractor Mortgages

Rent to Own Scheme

The LibDems have announced a new Rent to Own scheme before the coming General Election to be implemented between 2015 and the next election in 2020.

It is for first time buyers, especially those who cannot put together the deposit for their first home.

The new Rent To Own scheme is designed to help new buyers to build up a stake in their homes via renting.

First Time Buyers

Getting started in the market is a huge problem for first time buyers. The typical first time buyer in London will need a deposit of over £60,000 if they wan to buy their first home.

They would pay what they would pay in rent, at a market rate, for 30 years. After that they would own their own home.

There would be something at the end of it for them – ownership of their own home.

Dream of Home Ownership

According to Nick Clegg, the LibDem leader:-

“For working young people the dream of home ownership is increasingly out of reach. Prices are so high renters cannot afford to save for a deposit, which means they can never take that first step onto the housing ladder.

“Rent to Own will mean, regardless of their background and family circumstance, they will be able to make this a dream a reality. This is about building a stronger economy and fairer society, and making sure Generation Rent has the same opportunity to get on in life as their parents and grandparents before them.”

Higher Monthly Payments

It is expected that the monthly payments for Rent To Own will be higher than if they took out a mortgage on the property.

It is being suggested that, in London anyway, it will mainly benefit those on higher incomes.

The new houses for the Rent to Own scheme will be built by Housing Associations.

The LibDems plan to have 30,000 homes in the Rent to Own scheme by 2020.

Paying Rent

While they will be paying more than mortgagees for their properties there will still be people who benefit out there.

There are millions of people who have been paying rent on their houses for years out there. The very cost of the rent prevents them from being able to save up for a mortgage deposit.

They might as well have been paying that rent towards being able to own the house after 30 years.

Contractor Mortgages Market – Best Places for Contractors to Buy

Contractor Mortgages Market

The Contractor Mortgages Market is booming, according to specialist contractor mortgages broker Tony Harris.

London has seen massive rises in the price of houses and apartments. With London becoming, more and more, an international city, the contractor mortgages market is set to continue in its upward path.

The best value in the next few years, though, could be in cities and areas who have more recently started rising in price.

Property Mortgages Market Boom Moving North

Every property market boom starts in the south and gradually spreads throughout the country. It moves north generally.

This means that cities like Sheffield, Liverpool and Glasgow are likely to rise more than southern cities in he next few years. The contractor mortgages market is likely to increase significantly in those cities.

Property experts say that London house prices will continue to rise – but at a slower rate than northern cities.

Buy a House up North

Indeed, if a contractor from London got an extended contract in a northern city, like Liverpool or Glasgow, it might be a good idea to sell up in London and buy a house in Liverpool or Glasgow.

Firstly, it would be an absolutely palatial place you could get there just by selling a flat in a decent area of London.

Secondly, when it was time to go back down south again the contractor would get an even better property in London after selling his, or her, northern house for more than his previous place in London was now worth.

Your house could make more for you than your contract.

Average Annual Earnings

House prices in London are now 12 times Londoners average annual earnings. For the UK as a whole it is 6.3 times annual earnings.

Average house prices in both London and Oxford were now so high that they were more than 12 times local annual earnings – almost double the UK average of 6.3 times wages.

The cities where house prices have been rising for 6 years are as follows. They are Aberdeen, Bristol, Cardiff, London, Cambridge, Birmingham, Oxford and Manchester.

Contractor Mortgages Market Best Areas to Buy

Although property prices will continue to rise in those cities, it will be at a slower rate than the following cities which have only started to recover in the past two years.

They are Glasgow, Edinburgh, Liverpool, Newcastle, Sheffield and Leeds. Belfast has only started recovering in the past 18 months and houses there are at real bargain prices.

House Prices in those cities are only between 3 and 6 times local annual salaries. This makes them most affordable. There’s more room for property price rises in those cities.

London Property Boom

In the last 6 years the average property price in London has risen from £144,278 to £405,500. That’s astonishing. Part of that is due to London’s status as an international city.

The Government’s Help to Buy scheme has given a massive boost to the contractor mortgages market. It means that first time buyers could enter the housing market again.

They can get 95% mortgages now compared to 75% to 80% mortgages before.

Contractor Mortgages Maximum Offers

Low rates are also sending the market higher. These are the lowest rates that contractors have ever had – and many of the are taking fixed rate mortgages to lock in those low rates.

A contractor mortgages lenders war has intensified this year leading to some great bargains for contractors as regards mortgage rates.

Banks and building societies ask contractors for three years worth of accounts. Contractor mortgage brokers need just a copy of the contract.

High street banks and building societies base their offers on the contractor’s director’s salary. Contractor mortgage brokers base it on a contractors daily rate annualised – which is much more.

To find our more click on Specialist Contractor Mortgages

Contractor Crowdfunding Club

To learn more, or to join, our Contractor Crowdfunding Club click on Contractor Crowdfunding Opportunities

You’ll hear first about great crowdfunding opportunities and get in ahead of the crowd. Often these opportunities disappear in hours.

First Time Buyers Property Boom on back of Help to Buy

Specialist Contractor Mortgages

First Time Buyers Property Boom

A first time buyers property boom has sent the property market soaring. Prior to the Help to Buy scheme being brought in by the Government, contractors were having to stump up 20% to 25% deposits if they wanted to buy a house or apartment. As you can imagine, most first time buyers could not afford that.

It meant that first time buyers were being pretty much excluded from the market and they are normally the lifeblood of the property market.

Laws of Supply and Demand

If you cut the demand for a commodity then, if the supply stays the same, the price decreases. Equally, according to the economic Laws of Supply and Demand, if you increase the demand for a commodity, and the supply remains the same, then the price goes up.

That is why house prices were previously falling and now they are rising.

With the addition of first time buyers to the market the demand has increased and so the prices have been rising. This has been because of a first time buyers property boom.

House Prices Rising

Recent figures from the Office for National Statistics (ONS) have shown that house prices rose by 9.% in 2014.

Mortgage lenders have reported that this first time buyers property boom has led to a record level of mortgages sold to first time buyers.

The average house price is now £272,000 – up £22,000 in just a year.

Specialist Contractor Mortgages Market

There’s also a first time buyers property boom in the specialist contractor mortgages market, according to specialist contractor mortgages broker Tony Harris.

He has been getting contractors mortgages for years. You are always better to use a specialist contractor mortgages broker. They can get contractors the best deals.

He can get contractors mortgages based on their daily rate annualised times 4. All they have to do is produce a copy of their contract.

If contractors went to a high street bank or building society they would be asked for 3 years worth of accounts. Any offer would be based on their Director’s Salary too.

To find our more click on Specialist Contractor Mortgages

Contractor Crowdfunding Club

To learn more or to join our Contractor Crowdfunding Club click on Contractor Crowdfunding Opportunities

You’ll hear first about great crowdfunding opportunities and get in ahead of the crowd. Often these opportunities disappear in hours.

 

Help to Buy Property Boom sends Housing Market Soaring

Help to Buy Property Boom

House Prices soared by £6,000 just last month in England and Wales.  It was boosted by a Help to Buy Property Boom.

That’s up 2.4% in just a month.

There was a fall of 4% in the number of new sellers.

Everyone knows that, according to the Economic Laws of Supply and Demand, if the Demand remains the same and the Supply (of housing) decreases then the price of that commodity (houses) will rise.

That’s what has been happening.

Buy To Let Property Owners

It seems that Buy to Let property owners are hanging onto their properties. It also seems that Buy to Let investors are long-term investors and are less likely to sell than other property owners.

With more Buy to Let property owners about, that is decreasing the supply of properties for sale even further and pushing up the price.

With mortgage rates at record lows and the Government helping new property owners to get 95% mortgages, there is a Help to Buy property boom on full flow.

Many people’s houses are earning more than the people who live in them.

Lenders Competing for Customers

Estate Agents are saying that they are seeing the lowest ever level of quality properties on the market. No one is selling except those who have to, as they watch their house prices rise and rise.

Lenders are now having to compete aggressively for customers and UK Contractors are taking advantage and sealing in these great rates. There’s a mortgage war happening at the moment and a Help to Buy Property boom.

Specialist contractor mortgage brokers are getting contractors fantastic rates, at the moment, based on just the production of their contract. They are also getting them 95% Help to Buy mortgage offers based on their daily rate annualised.

For more information see Specialist Contractor Mortgages

Top contractor mortgage deals for UK Contractors

Best Contractor Mortgages

Top Contractor Mortgage Deals

Our mortgage partners have negotiated a number of top contractor mortgage deals.

Is it a good time to go for a variable rate?

Many house owners are expecting the interest rates from their variable mortgages to rise within the next year or so which will increase their repayments. Contractors would be best to take a fixed rate mortgage if they want the top contractor mortgage deals.

Our partners have got credibility in the specialist contractor mortgages market. This is because their contractors have made all their repayments and don’t tend to have to give back the keys.

This is, also, because most of them take fixed rate mortgages and don’t have the worry of repayments rising when interest rates go up. It’s as good a time as any for contractors to take fixed rate loans.

Here’s a tip. Recently the difference between 2-year and 5-year fixed rate mortgages has narrowed. It would be a good idea for contractors to pay the little extra and fix for 5 years rather than just 2 years.

Specialist Top Contractor Mortgage Deals

Our partners have found a new lender in the specialist contractor mortgages market who have this top contractor mortgage deal:-

– A 2 year fixed rate at 2.29% based on an 85% LTV
– £999 arrangement fee that can be added to the mortgage
Or
– A 5 year fixed rate at 3.29% based on an 85% LTV
– £1,999 arrangement fee that can be added to the mortgage
Another great deal secure by our mortgage partners with yet another lender is for those who only have a 5% deposit and have been contracting for more than 3 years.
They are offering:
– A 3 years fixed rate at 4.99% based on a 95% LTV
– No arrangement fee

Specialist Contractor Mortgages

Our contractor mortgages partner’s advisers will give you the best advice on which options are best for you for top contractor mortgage deals.

To find out more, or to apply, fill in the mortgage form at the bottom of this page:-

Specialist Contractor Mortgages

First Time Buyers Mortgages Bonanza | Contractor Mortgages

UK Contractor Mortgages articles

First Time Buyers Mortgages

We are seeing a real a boom in First Time Buyers Mortgages. 2015, already, looks like a great opportunity for Contractors to buy their own homes.

Now, our mortgage partners, have announced a new low start mortgage that’s only available here for contractors.

Property Market

Boris Johnson has just announced two new deals which will help First Time Buyers Mortgages and allow Londoners to get on the housing ladder for the first time.

Those who don’t live in London don’t qualify for these offers. However, our partners are working on getting similar deals for contractors in other places in the UK.

Indeed, they have great news of another new first time buyers mortgages deal that is available to all contractors in the UK. This comes from a first time buyers mortgages deal they have with a mortgage lender.

Contractor First-Time Buyers Mortgages Deal

Mainly due to the Government’s Help to Buy scheme, the number of first time buyers is up by 50% in just 2 years. the Halifax Building Society say this sector is at a 7 year high. It predicts that 2015 will be even better.

In response to this our mortgage partners have found a contractor-friendly building society who are happy to provide low-deposit first time buyers mortgages.

This great offer is only available to contractors through our mortgage partners. It gives contractors a 5% deposit mortgage with it being interest-only for the first 3 years. That’s a pretty good deal in this market. It goes back to being a repayment mortgage after that.

Low Start Mortgage Deals

The low start mortgage offers:

-  A 3 year variable rate at 4.45% based on a 95% Loan to Value (LTV)
-  Or a 3 year variable rate at 3.75% based on a 90% LTV
-  Interest only for the first 3 years, reverting to repayments thereafter
-  Based on our specially negotiated income measure of annualised contract rate, don’t need to prove your income with 3 years accounts
-  £500 arrangement fee that can be added to the mortgage
-  Free valuation on your chosen property
-  No penalty for overpayments, as long as you don’t repay the full mortgage amount within the first 3 years

First Time Buyers Mortgages Partner

Our mortgage partners  don’t charge a fee for arranging your mortgage. Other specialist contractor mortgage brokers charge up to £695 as an arrangement fee. So, you get their advice free.

To find out more, or to apply, fill in the mortgage form on this page:-

Specialist Contractor Mortgages

British Contractor Mortgage Rates start with a Bang in 2015

British Contractor Mortgage rates

British Contractor mortgage rates really do need to be seen to be believed at the moment. They are sure to rise at some point after the election so it is worth taking them now.

2014 is being heralded as the strongest year for mortgage lending since 2008 according to the Council of Mortgage Lenders (CML) but 2015 looks set to follow in its footsteps. January has seen record low British Contractor mortgage rates released by Contractor friendly Lenders.

Contractor Mortgages ‘Best Rates’

Since the New Year we have seen two-year fixed rates fall as low as 1.64% on a 60% LTV from Contractor champion Halifax which is an outstanding rate for Contractors with a substantial deposit.

This product does carry an arrangement fee of £1,499 from the Lender but this can be added to the mortgage rather than paid up front.

Best rates for Contractors with Lower Deposits

If you have less savings to put down however, you won’t be disappointed as a relative newcomer to the Contractor Mortgage market, Metro Bank, have released a raft of very competitive fixed rate mortgages at higher loan to values including 2 year fixed rates at:

– 1.99% on a 70% LTV
– 2.04% on an 80% LTV
– 2.29% on an 85% LTV

All of these rates carry a £999 arrangement fee from the Lender but this can be added to your mortgage so you won’t need to find the cash up front and the minimum loan amount is just £20,000 up to a maximum of £1,500,000 so it suits Contractors buying at every level of the housing ladder.

5 year fixed rate mortgages at 2 year fixed rates!

Furness building society have launched a five-year fixed rate mortgage at just 2.94% on an 80% LTV which is closer to the UK Contractor mortgage rates we have been seeing for two-year fixed rate products in recent months, particularly at this LTV level. Again this product carries a £999 arrangement fee but this can be added to the mortgage.

If you are considering fixing your mortgage for longer to ride out any fluctuation in the market then this Contractor-friendly Lender is offering a highly competitive rate which should see you through the inevitable rise in the base rate over the next five years.

These British Contractor mortgage rates are exclusive to our specialist contractor mortgages partners.

They don’t charge a fee for their mortgage service.

British  Contractor mortgage rates have never been better. To find out more from a mortgage Adviser today, or to apply, you should fill in the form on this page – Specialist Contractor Mortgages

Contractor Mortgages market boost from Help to Buy

Contractor Mortgages Market Boost

There has been a major contractor mortgages market boost from the new Help To Buy programme implemented by the Government.

Of course, we all know that Help to Buy was brought in by the Government to raise the price of houses so that there would be a feel good factor at the next election. People would feel a bit better off if their houses were rising in price.

However, the contractor mortgages market boost that the Help to Buy scheme has produced has been positive for contractors. It has especially allowed new contractors to get on the property ladder.

Banks and Building Societies

Previously banks and building societies were demanding a 20% deposit from those seeking loans. That was keeping first time buyers out of the market. It is first time buyers who are the lifeblood of the market.

The economic Laws of Supply and Demand kick in here. If there are fewer people competing to buy houses then the price will fall. If there are more people competing for houses then the price will rise. Those first time buyers will become second house buyers at some point.

Average house prices for first time buyers rose by 11% last year compared to 9.5% for existing owners.

Help to Buy Scheme

The Government’s Help to Buy scheme has caused this contractor mortgages market boost. Now, new buyers only have to come up with a 5% deposit instead of a 20% deposit. That makes a huge difference and has brought plenty of people into the market.

First time buyers last year paid an average £208,000 for their first homes. A 5% deposit would have come to an average of £10,400 which is easily payable by a contractor. A 20% deposit would come to £41,600. Even contractors would have to wait a while to gather that deposit.

UK House Prices

Existing owners paid an average of £312,000 for a house. UK house prices rose 10% overall last year. With a rise of 10% last year that gives a rise of 21% in two years.

Contractors would be much better to get their contractor mortgages through specialist contractor mortgage brokers as they get better rates and better offers and don’t have to show accounts.

To find out more, or to apply, you should click on Specialist Contractor Mortgages

Best Contractor Mortgages

Best Contractor Mortgages Rates & Offers

Best Contractor Mortgage Rates

Best Contractor Mortgage Rates

The best contractor mortgage rates are usually got from using specialist contractor mortgages brokers.

Contractors are usually looked upon as a risk by high street banks and building societies. To their minds, contractors don’t have regular income like a permanent worker.

If you walk into one of those looking for the best contractor mortgage rates you are going to be disappointed. It is usually the case that contractors have to provide three years worth of accounts to them. The offer that they get is based on their Director’s salary. That doesn’t get you much.

Specialist Contractor Mortgages Brokers

Because they are considered a risk the mortgage rate they are offered is usually quite high. That’s why contractors should use specialist contractor mortgages brokers if they want to get the best contractor mortgage rates.

They can even use Help To Buy to get contractors offers of up to 95% of the property value.

One such specialist contractor mortgages broker is Tony Harris. He has been getting IT Contractors mortgages for over 10 years. Now he is able to get all sorts of contractors mortgages.

Best Contractor Mortgage Offers

He can get the best contractor mortgage rates because he has built up credibility over the years with lenders. This credibility has been helped by contractors paying their mortgages regularly. They have not defaulted on their mortgages.

That’s why Tony is able to get the best contractor mortgage rates for contractors. He can also get contractor mortgage offers based on their daily rate. Multiply your daily rate by 5, then 48 and then 4 to get what your likely mortgage offer is likely to be.

Often the offer is better than market rates. Thank your fellow contractors for giving Tony his credibility so that he can get you the best contractor mortgage rates.

The other great thing is that he is able to get the best contractor mortgage offers just on production of your contract. You don’t have to produce three years worth of accounts.

To find out more, or to apply, you should click on Specialist Contractor Mortgages

Best Contractor Mortgages

Best Contractor Mortgages Rates & Offers

Contractor Mortgage Options for UK Contractors

Contractor Mortgage Options

The Contractor Mortgage options for UK Contractors are twofold.

1.  You can step in to a high street bank and ask for a contractor mortgage or

2.  You can contact a specialist contractor mortgages broker

The first of the contractor mortgage options is what most contractors take – but it is madness.

The second of the two contractor mortgage options is the clever one – but only the contractors in-the-know are able to benefit from it.

High Street Bank mortgages for contractors

If you step into the high street bank, or building society, they will:-

a) Ask to see three years worth of accounts, meaning you will have to have been a contractor for at least 3.5 years

b)  Give you a quote based on your director’s salary. We all know that contractor prefer to keep that as low as possible. They want to take their money out in dividends and so maximise their returns.

You would have got a bigger offer if you had stayed in a permanent role.

Specialist Contractor Mortgage Brokers

So, what about the second of the contractor mortgage options?

That’s the sensible one.

A specialist contractor mortgages broker will:-

a)  Get you a quote on production of your contract without having to show three worth of accounts to get a contractor mortgage

b)  Get you a quote based on your day rate annualised.

Your Contractor Mortgage Quote

So, if you got £500 a day, that would be £2,500 a week.

They would multiply that by 48 to get your annual ‘salary’. That would make your annual salary £120,000 a year.

They would then multiply that by 4 to get your specialist contractor mortgage offer.

So the contractor mortgages offer would be £480,000.

As you would have to put down a deposit of a minimum of 5% you are talking about being able to buy a property worth more than half a million pounds.

This is the best of the contractor mortgage options.

Specialist Contractor Mortgage Broker

Tony Harris has been getting contractors specialist contractor mortgages for years now.

Because his client contractor have been paying up and not defaulting, he can often get contractors mortgage rates at better than current market rates.

He can even get contractors mortgage offers on the very first day of their first ever contract.

To find out more, or to apply, you should click on Specialist Contractor Mortgages