Contractor Mortgage Demand
Contractor Mortgage demand is rocketing. The average price of houses soared because of different Government initiatives designed to send house prices rocketing before the next election. They are trying to create a feelgood factor.
A survey by Rics shows their members expecting house prices to continue to rise for at least 5 years.
Just last week, the Halifax said that house prices are rising at their fastest rate for 3 years. House prices for the 3 months to the end of June were up 3.7% compared to this time last year.
Help to Buy
This is expected to be just the beginning, as the Government’s Help To Buy scheme starts to kick in. The Government are underwriting part of mortgages now. This is in order to let people get 95% mortgages when lenders were insisting on a deposit of at least 20% before.
This is opening up the market to first time buyers who were locked out before. It is increasing the demand so, when that happens, prices soar according to the economic Laws of Supply and Demand. Contractor Mortgage Demand will keep increasing.
According to Peter Bolton King of Rics “After what has seemed like a very long wait we are finally starting to see what looks like the beginning of a recovery in the housing market”.
“It is important to remember that activity levels still remain depressed by historic standards. However, the various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends.”
Contractor Mortgage Deals
Specialist Contractor Mortgage broker Tony Harris, who has been getting contractors mortgages for years, said that he had never been busier. Contractor Mortgage Demand is going through the roof.
Tony is able to get specialist contractor mortgage deals at rates below the market average. This is because of his credibility with lenders. It’s also because contractors that he previously got mortgages for have not defaulted.
He is able to get them mortgages without having to produce any accounts. All they need is a copy of their contract. He can get them mortgages at up to 4 times their daily rate annualised. This means that contractors on £500 a day can get an offer of close to half a million pounds.
For more information or to get a quote click on Specialist Contractor Mortgages