Government Help to Buy Scheme
The Government Help To Buy scheme is sending the number of Contractor Mortgages soaring to even greater heights than the peak of the boom in 2007. The Government Help to Buy scheme is where the Government underwrites 20% of the mortgage so that customers can get 95% mortgages again.
The Government are doing it to boost the housing market and the economy. Most of all, though, they are doing it to increase the feelgood factor and get themselves re-elected.
Pundits have criticised the Government saying that the Government Help to Buy scheme will create a housing boom. However, that is what the Government intended.
House Price Increases
Nationwide have just released figures showing that house prices have increased by 4% in the first six months of the year. In London house prices are now 5% above what they were at the peak of the boom in 2007. The rest of the country is still 9% below that peak.
There has never been a better time to buy, though, with the Government committed to fuelling a house price boom. The Government Help to Buy scheme is to last for 3 years at which point a recovering economy should keep prices moving ahead.
Interest rates have never been lower at around 4% for a mortgage. This is definitely the time to go for a fixed-rate mortgage.
Specialist Contractor Mortgage Brokers
It is also better to use specialist contractor mortgage brokers. They are much better at getting contractor mortgages than the high street banks or building societies. Contractors don’t have to produce three years worth of accounts but merely their contract.
Indeed they can get these specialist contractor mortgages on the very first day of their very first contract.
They can get a quote of up to 4 times their daily rate annualised (daily rate x 4 x 48). Most banks and building societies, who don’t have experience of contractors, base it on Director’s salary.
To get more information or to ask for a quote click on Specialist Contractor Mortgages