Contractors Renting Property Wasting Money

Contractors Renting Property

Contractors Renting Property

If you are one of those contractors renting property then you may be tossing good money down the train.

You would be far better off buying your own property.

The number of people renting in the age range of 25 to 34 is now 35%. That’s up from 29% previously.

That’s a lot of money going to landlords, therefore, that doesn’t need to.

Contractors of 40 years of age and more who try to get a mortgage to buy a house may find themselves still paying for it in their retirement.

Getting a Mortgage

Many contractors believe that they cannot get a mortgage because:-

  • Building Societies and banks have told them that they need to be able to show three years worth of accounts
  • They will be offered a multiple of their Director’s salary rather than using their daily rate
  • Banks and building societies are asking contractors for large deposits
  • They will have to pay higher interest rates because their profession is more risky.

Nothing can be further from the truth.

Banks and Building Societies

It did use to be the truth and it still is in many banks and building societies.

However, there are now specialist contractor mortgage brokers operating getting a number lenders to loan to contractors.

Lenders were sceptical at first but saw that contractors were good customers. They made their payments and, largely, didn’t default on their mortgages.

Mortgage Offers to Contractors

So now contractors can get:-

  • A mortgage offer based on their daily rate annualised
  • Only their contract needed as proof instead of accounts
  • Mortgages with small deposits, often just 5% deposits
  • Interest rates often better than the market rates.

Contractor Mortgage Quotes

Moreover, they can get quotes in the same day as they apply and can usually move into their dream house in a month or under.

According to Shelter, those renting will pay, on average, £41,000 in rent over the next 5 years. That’s 41% of the value of a first time buyers home.

In London it is even worse. Those renting there will pay a whopping £89,000 in rent over the next 5 years. That’s 23% of the value of the average first home.

So, if they took out a mortgage it would only cost them £66,000 in mortgage repayments over the next 5 years. That’s with a 95% mortgage with a 5 year fixed rate.

So, renters will lose out to the tune of £23,000 over 5 years – and they won’t have anything to show for it at the end.

There is no minimum number of years you have to be a contractor before you get a mortgage.

Specialist Mortgage Brokers for Contractors

Specialist mortgage brokers can get first time contractors mortgage quotes on the very first day of their first ever contract.

If a contractor earns £400 a day their mortgage offer would be not too far off £500,000. That’s even if they have just started contracting.

Contractors renting property must be mad.

If you want to find out more and see how much you could get just fill in the form below and someone will be in touch.

Your Name (required)

Your Email (required)

Your Telephone (required)

Your Daily Rate (required)

Property Price (required)

Borrowing Amount (required)

Comments

Brexit Contractor Mortgages Market Bonanza

Brexit Contractor Mortgages

Brexit Contractor Mortgages

It looks like there is going to be a post Brexit Contractor Mortgages boom which is good news for contractors.

Firstly, the Governor of the Bank of England, Mark Carney, went on TV to announce that interest rates are likely to fall in the summer.

Therefore, this will not only make mortgage cheaper, it will boost house prices across the country.

Rising House Prices

Secondly, the pound has fallen by around 10% against the Euro since the referendum.

This will make it 10% cheaper for people from outside the country to buy houses in the UK.

Furthermore, the fall is even more pronounced against the dollar which will make it cheaper still for Americans to buy in the UK.

Best Deals

Best Deals for contractors seeking mortgages

This will affect mainly London and the bigger cities but there will be a knock-on effect elsewhere. It should push house prices higher still.

Better Remortgage Rates Also

So, it seems that Brexit has been good for getting great rates on remortgages.

Indeed, just this week, HSBC have come out with a two-year fixed rate mortgage of just 0.99%.

Santander has come up with a 10-year fixed mortgage rate of just 2.94%.

This goes along with their 5-year fixed rate mortgage ast 2.24%.

It is predicted that there are going to be lots of great 5-year fixed rate mortgages being offered in te next few weeks.

Higher Property Prices

These deals are sure to send property prices north as mortgages become more affordable.

Prior to Brexit the pundits were predicting the end of cheap mortgages as they expected interest rates to start rising soon.

They said that the recovery in the economy would send interest rates rising. That would, therefore, mean mortgage rate increases.

House prices were expected to fall because of it.

Brexit Contractor Mortgages Boost

However, Brexit has changed all of that.

With the Brexit contractor mortgage market expected to bring lower mortgage rates, houses are likely to start moving higher.

Contractor Property Market

Contractor Property Market Opportunities

For contractors it is always better to contact a specialist contractor mortgages broker rather than step into a high street bank or building society.

Those specialist brokers can get the right mortgage for you.

They can also get it based on just your contract rather than having to see three years worth of accounts. Also, they will base the offer on your daily rate annualised rather than on your Director’s salary.

So, it’s a good time to take advantage of the Brexit Contractor Mortgages boost.

For more information you should fill in the box below and you’ll be sent details.

Your Name (required)

Your Email (required)

Your Telephone (required)

Your Daily Rate (required)

Property Price (required)

Borrowing Amount (required)

Comments

Specialist Contractor Mortgage

Specialist Contractor Mortgage using a broker

Specialist Contractor Mortgage

You should always get a specialist contractor mortgage rather than walking into a high street branch.

Many contractors make the mistake, when looking for a mortgage, of walking into their local High Street bank or building society and asking for a mortgage there.

What happens is that the lender is not used to dealing with contractors and has no specialist contractor mortgages. They then tell the contractor that they need to produce three years worth of accounts. Usually you must be a contractor for at least 4 years to have those.

If the contractor can’t provide those then that is a deal breaker. The contractor goes away believing that he, or she, has to wait a few years before applying for a mortgage.

Based on Director’s Salary

Even if the contractor has more than four years’ experience and can produce the accounts, the next obstacle that they face is that the high street bank or building society only count the amount that the contractor is paid as a director. They then multiply that annual salary by 3 or 4 to work out how much they should loan the contractors.

As we all know, contractors like to pay themselves as little as possible so that they can take more of their money in dividends.

What the contractor should have done is to contact a specialist contractor mortgages broker.

Daily Rate Annualised

They have a good reputation with those who loan money. So, they can get contractors a mortgage without having three years of accounts. This is very useful. That’s because one of the times when contractors want to buy a house is when they first start contracting and have more spare money.

The second way that the specialist contractor mortgages broker can help is that they can get contractors mortgages based on their overall income. It is based on their whole daily rate translated to an annual amount.

The multiple is on that sum and not on their director’s salary. This makes a huge difference on the mortgage offer.

So, it’s always wise to get a specialist contractor mortgage.

Here’s one of those Specialist Contractor Mortgages

Specialist broker – Why Contractors should use them

Specialist Broker

Specialist Broker

Tony Harris is a specialist broker of contractor mortgages. He has been getting contractors mortgages for many years. So, I thought I would ask him why contractors should use a specialist broker like him rather than go direct to those that give out mortgages.

I asked him “Why should I go via you when I can just walk into a high street bank or building society? What differentiates you?”

Contract Based

With over fourteen years experience as a specialist broker and of negotiating our contract based mortgage underwriting, we have built unrivalled relationships with lenders.

If you go in to a high street bank and present your accounts, the mortgage adviser will only see your net income. This should be considerably less than you are actually earning (if your accountant is doing his job). So, this could severely limit the amount you can borrow.

Annual Contract Rate

Instead we use our contacts to secure your mortgage based on a multiple of your annual contract rate. This is irrespective of how long you have been contracting. It also doesn’t matter how long you have left on your current assignment.

This invariably allows our clients to borrow far more than they could even when they were a permie. It also saves the trouble of collating years of accounts or projections. This is the standard requirement if you were to go in-branch.

Mortgage Lenders

We understand that you live a very hectic lifestyle and have tailored our service to match.

We won’t need to see you face-to-face for a lengthy meeting as our entire service is offered online, via email and by phone. We do all the running for you, liaising with solicitors, lenders and estate agents so you don’t have to.

You will have one contact who will guide you through the process and is on hand to answer any questions you may have, leaving you free to concentrate on the needs of your client.

Best Mortgage Rates

That answers that then. It would be a foolish contractor who walked into banks asking about their contractor mortgages.

Tony uses his credibility in the marketplace to help get contractors the best mortgage rates available and the highest offers.

To get further information or to apply to a specialist broker for a mortgage, fill in a form here and Tony will get back to you:- Mortgages for Contractors

Contractor Mortgages – how long do you have to be a Contractor to get one?

How Long Do you Have to be a Contractor

How Long

Contractors always want to know how long you have to be a contractor to get one.

Tony Harris is a specialist contractor mortgages broker. He has been getting contractors mortgages for years. We have heard tales of people walking into high street banks to get a mortgage only to be told that they need to have 3 years accounts with them to qualify.

Many contractors want contractor mortgages soon after they become contractors. With their new-found wealth that comes as a bit of a blow. So we asked Tony the question.

How long do you have to be contracting to get a mortgage? I heard you need three years worth of accounts.

Applying for a Mortgage

Said Tony, “It is true that if you apply for a mortgage yourself on the high street, you will almost certainly need to have access to several years accounts. You will also need to show a steady or rising income from contracting in this time.

“However, we base your mortgage on a multiple of your contract rate alone. We simply need a copy of your current contract, a bank statement and proof of ID to secure your mortgage. The great news is that we can get you a mortgage on your very first day as a Contractor!”

Specialist Contractor Mortgages

So, how long was I told? I wish I’d known Tony when I first wanted to buy a house and get a mortgage after I turned contractor.

I went to a bank. They told me I needed three years of accounts. I thought that was that. Houses in my area in Maida Vale went up from £18,000 for the one I wanted to £96,000 before I was able to buy one.

It’s great that these specialist contractor mortgages are available now.

To get further information or to apply for a mortgage, fill in a form here and they will get back to you:- Contractor Mortgages

Contractor Mortgage Offer – how much can you get?

How Much Can You Get

So, How Much Can You Get

The questions contractors ask is how much can they get when applying for a specialist contractor mortgage.

Tony Harris is a specialist contractor mortgages broker. He has successfully got contractors mortgage offers for years, way above what a high street bank would get you. We ask him how much a contractor can get on his contractor mortgage offer and how it is worked out.

Tony, how much of a contractor mortgage offer can you get a contractor? Is it related to the amount you pay yourself from your company? Can you get a contractor mortgage offer based on the total amount of the contract? Say I was earning £400 a day but paying myself £150 a day? How much of a contractor mortgage offer could you get me?

Tony’s reply on Contractor Mortgage Offer

“Our specially negotiated contract based underwriting uses your hourly or daily rate to work out how much you can borrow This is irrespective of how much you physically draw out for yourself.

“We simply take your daily rate of £400 and work out what your annualised rate would be if you worked at this level for five days a week and 48 weeks of the year.

“The lender will then specify what multiple of this they are willing to lend. However, it is usually around four times annual contract rate.

Contractor Mortgage Offer from Contract

“This means you could secure a mortgage of £384,000 despite only paying yourself £150 a day.

“You don’t have to have an annual contract to receive this amount. The lenders we use understand our niche clients. They appreciate that you are highly likely to secure another contract as soon as the current one has ended. So even if you only have a three-month contract, we should be able to secure you a mortgage”.

Director’s Salary

That’s pretty good and a lot more than a bank or building society would offer you. They would only take the Director’s salary you draw. They offer contractor mortgages based on 3, 4 or 5 times that. That wouldn’t buy you much.

It’s basically all down to Tony’s credibility with the mortgage brokers and his success down the years in bringing them contractors who pay their mortgages. Contractors can tap into that.

To get further information or to apply for a mortgage, fill in a form here and Tony will get back to you:- Contractor Mortgages

How quickly can you get Contractor Mortgages?

How Quickly Can You Get a Contractor Mortgage

How Quickly

We asked top specialist contractor mortgages broker Tony Harris how quickly he could get contractor mortgages. Was it a long-drawn out process? Here is how he replied.

“Our advisers will carry out an initial consultation via phone or email lasting 10-15 minutes. Once we agree which lender best suits your needs an agreement in principle can be secured. This will be within a matter of hours of your initial call or email.

“This gives you real clout when negotiating with estate agents etc. That’s because it shows the lender is broadly in agreement that they will lend you the money and that you can move quickly with any purchase.

Property Offer

“They would be assured that once you a seller has accepted your offer on a property, we’d agree a competitive interest rate scheme with you that meets your requirements and the application would go live straight away.

“After receipt of your initial instruction the whole process of underwriting, valuation and legal to you getting the keys to your new home in 4-8 weeks.

“It helps to speed things up, to get contractor mortgages, if you have the necessary documentation to hand. However, because we are able to do everything remotely via phone and email, the application is hassle free. It’s much faster than if you were to apply through a high street bank branch”.

Contractor Mortgages

That sounds pretty speedy to get contractor mortgages. It would put you to the head of the queue if you were bidding for a house.

Tony reckons that they can get a new contractor mortgage offers on the very first day of the new contractors first contract. They could have the new contractor in his, or her, dream house in less than a month.

To get contractor mortgages or further information or to apply for a mortgage, fill in a form here and Tony will get back to you: – Specialist Contractor Mortgages

Contractor Mortgages for Umbrella Company Contractors

Umbrella Company Contractors getting Mortgages

Umbrella Company Contractors

Can specialist brokers get mortgages for umbrella company contractors?

Specialist contractor mortgages broker Tony Harris has been getting contractors mortgages for years without them having to produce three years worth of accounts as a high street bank would ask for. He can also get the offer based on their daily rate rather than a multiple of their Director’s salary.

He started with getting mortgages for IT Contractor more than ten years ago. Previously contractors found it difficult to get mortgages because they didn’t have regular monthly income like a permanent employee.

Mortgage Lender

However, Tony talked a lender into taking a chance and give contractors mortgages. The contractor paid up their mortgages monthly and didn’t default.

This gave Tony greater credibility with the lenders. So, he was able to get more and more mortgages for contractors. This has benefitted many, many contractors in the last 10 years.

However, can he also get specialist contractor mortgages for Umbrella Company contractors? We put it to him.

We asked “Tony, do you cater for Umbrella Company contractors as well as Limited Company contractors? What info do they have to supply and is easier or harder to get them mortgages?”

Contractors Mortgages

He replied “We use a multiple of contracts irrespective of whether you are a ltd company owner or if you contract through an umbrella company.

“The only difference is that additional evidence is needed to support your application by way of your payslips. It is no harder to secure a mortgage for umbrella company contractors, as long as you have a signed copy of your current contract”.

So it looks as if those specialist contractor mortgages are available to Umbrella Company contractors just as easily as they are to Limited Company contractors.

To get further information or to apply for a mortgage, fill in a form here and Tony will get back to you:- Contractor Mortgages

Contract Nurses Can Now Get Great Mortgage Offers

Contract Nurses Great Mortgage Offers

Contract Nurses

Contract Nurses can now take advantage of specialist mortgages from specialist contractor mortgage brokers.

These brokers can get them the best mortgages offers at the best market rates.

These specialist mortgage brokers came into the market around 10 years ago.

They were mainly, first of all, for IT Contractors. Previously mortgage lenders had considered contractors too risky to lend to.

Monthly Mortgage Payments

Therefore, they had to produce three years worth of accounts and only got mortgage offers based on their director’s salary, which contractors usually kept low to take their money in dividends.

Furthermore, the new contractor mortgage brokers were able to get contractors mortgage offers based on their daily rate annualised – without having to produce accounts. All they had to show was their contract.

These IT contractors made their monthly mortgage payments and had a low level of default.

So, a few years ago, these mortgage lenders decided that they would offer specialist contractor mortgages to all contractors including nurses.

Now, specialist lenders have expanded the market and nurses are able to take advantage of that.

So, contract nurses can now get mortgages as easily as any other contractors.

To apply just click on Contractor Mortgage Application

If you fill in the form, someone will be in touch to explain it more.

 

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.

Therefore, 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

So, he 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. This is 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.

Indeed, those specialist brokers have multiple lenders in tow that they can approach on behalf of the contractor in order to get the best deals available for them.

Gone are the days, however, 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

So, that would come as a shock to contractors who expected the red carpet to be let out for them on the 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.

So, 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.

Secondly, 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

So, mortgages have never been so cheap – especially for contractors.

IT Contractor Mortgages interest rates

IT Contractor Mortgages offers

First of all, 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 because of these brokers.

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

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

Your Name (required)

Your Email (required)

Your Telephone (required)

Your Daily Rate (required)

Property Price (required)

Borrowing Amount (required)

Comments

Contractor Mortgage Offers Based on Contract Value

Contract Value - Contractor Mortgage Offers at best rates

Contract Value

Specialist brokers can get contractors mortgages based on their contract value.

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 based on their contract value.

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

In a new breakthrough, a brand new lender has turned the contractor mortgages market upside down.

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 specialist 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 mortgages 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.

Therefore, 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.

Therefore, borrowers were happy as it meant that, as they just had to stump up the 5% contractor mortgages deposit. They could afford this.

Lenders were happy also. 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. This 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. It 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. They would, also, 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. They might even give you 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

The Chancellor hit Contractor Buy to Let properties in the Autumn Statement.

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. The Chancellor is going to hit them 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. This is 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

Indeed, even IT Contractors, who are pretty well paid, would struggle 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

With 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 loans 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.

A high street building society, or bank, would ask contractor to produce three years worth of accounts to get a mortgage offer.

They would base that mortgage offer 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, they will base that mortgage offer on their daily rate annualised.

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

Therefore, 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

Cheaper Contractor Mortgages Rates

It looks like cheaper contractor mortgages will be with us for some time now.

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 of 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. This is 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 the 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. However, 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.

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. That is 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. This is because 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

Itis time to get a first time buyers advantage for contractors.

They can now get first time buyers contractor mortgages in the contractor mortgage market which suit them as much 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. This compares 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. The average mortgage cost is £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. This 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. They were 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. This enabled 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. 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. The Royal Institution of Chartered Surveyors reports 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

– 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

Property Crowdfunding for Contractors

Contractor Mortgage Deals

We look, now at contractor mortgage deals in the current market.

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

Contractor Buy To Let Mortgage Market

The contractor buy to let mortgage market is in a bit of a boom at the moment.

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

Contractor Mortgages With Cashback

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 and Contractor 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. However, the price of houses and flats have gone through the roof in London, This is 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. This 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. This is 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. 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, click on Specialist Contractor Mortgages

Contractor Mortgages | Which Contractor Mortgage?

Which Contractor Mortgage

Which Contractor Mortgage?

People often ask us which contractor mortgage should a contractor choose?

What most contractors do is to 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. This took lenders 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

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.

So, the Government guaranteed 20% of the deposit. This 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!

Furthermore, it means you are able to increase your deposit by 25%.

It’s a 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.

“So, 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 for Contractors

Rent to Own Scheme

The LibDems have announced a new Rent to Own scheme before the coming General Election. This is 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.

They have designed the new Rent To Own scheme 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 Housing associations would build the new houses for the Rent to Own scheme.

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 mortgage holders 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.