95% UK Contractor Mortgages Surge
There’s been a contractor mortgages surge in the UK because of Help To Buy.
The demand for specialist contractor mortgages in the UK is soaring according to new figures. It seems that the average cost of a house in the UK is now £176,491 – up 0.7% in December from the previous month. It was predicted to rise by 0.6%.
Year on year, house prices were up by 8.8%. Tony Harris, a specialist contractor mortgages broker in the UK, is seeing contractor mortgages surge way above what it was even in the peak years up to 2007.
So, house prices are now just off their 2007 peaks – 4% off to be precise.
According to Howard Archer and economist at IHS Global Insight, “It is evident that the strength in house prices is spreading. This can only fuel concern that a new housing bubble could really develop in 2014.”
Help To Buy
It is the Help To Buy scheme that the Government has introduced that has caused this contractor mortgages surge in prices. It started in October and will remain in place for the next three years.
Prior to this, lenders were asking for deposits of 20% to 25% of the price of a house. This was keeping first time buyers out of the market.
Now, via its Help To Buy scheme, the Government is guaranteeing and subsidising the difference. That’s so that people can now get 95% mortgages again. This is fuelling a contractor mortgages surge.
UK Contractor Mortgages
This is causing an especial surge in the demand for specialist contractor mortgages in the UK. The 20% deposits had been a major problem for new contractors, who were now earning large sums of money. Many of them haven’t been saving long enough for a 20% deposit.
Tony Harris is able to get UK contractors mortgage offers on the very first day of their very first contract. All they need is their contract as guarantee and having contractor mortgage offers based on their daily rate x 5 x 48. The lenders then multiply this by up to 4, depending on their credit record, for the contractor mortgage offer.
To find out more or apply you should click on Specialist Contractor Mortgages