Contractor Mortgage Guarantee
There’s news of a Contractor Mortgage Guarantee.
Specialist Contractor Mortgages received a major boost with the new rules on Help To By spelled out by Chancellor Osborne today.
Previously lenders had been giving no more than 80% mortgages which reduced the demand. However, the Government stepped in with Help To Buy. The Government would underwrite 20% of the mortgage at zero interest. This meant that contractors could get mortgages at up to 95% of the total in a Contractor Mortgage Guarantee.
However, it was only for new houses. That is all to change, according to the statement today. A new scheme worth £12bn will launch in January 2014 which means that contractors will be able to join the Help To Buy scheme when purchasing any property valued at less than £600,000.
Help to Buy Scheme
Existing homeowners can use the Help to Buy scheme if they want to re-mortgage their home.
It won’t be available for Let-To-Buy folk or for second homes. However, one would expect that. The borrowers will have to pass lending tests – you would expect that too.
To find out more or to get a quote click on Specialist Contractor Mortgages