95% Mortgages for Contractors
The number of 95% mortgages available in the marketplace has trebled since the Government’s Help To Buy scheme was brought in during October. This has had a knock-on effect on UK Contractor Mortgages. Contractors are scrambling to get specialist contractor mortgages before the prices rise too high.
Not only that, the lenders are scrapping amongst themselves to use the Help To Buy scheme to sell those low deposit mortgages. This has resulted in the effective loan rates coming down a full percentage point since Help To Buy was introduced.
That’s saving the average buyer £1,200 a year in interest payments for houses averaging £150,000. When it comes to contractors that amount would be higher.
Contractor Mortgages in the UK
According To Genworth, buyers who want 95% mortgages via Help to Buy now have 132 different deals available to them. It seems that, since Help to Buy was introduced, lenders have cut the best rates from 5.48% to 4.69%.
That’s a fair bit of money for a contractor who is buying, say, a £300,000 house. Help To Buy allows first time contractors the opportunity to get a specialist contractor mortgage at a decent price.
Contractors still have a problem, when they go to a high street bank or building society. They ask for three years worth of accounts. They also base the quote on their Director’s salary, which they deliberately keep low. I found this problem all those years ago when I started contracting.
Specialist Contractor 95% Mortgages
Contractors today are luckier as there are now specialist contractor mortgages brokers, like Tony Harris. They have credibility with lenders in the marketplace. That’s due to the good behaviour of contractors for whom he previously got mortgages, in terms of making their payments and not defaulting.
Tony can get contractors 95% mortgages via Help To Buy on production just of their contract. Furthermore he gets them a quote based on their daily rate annualised. For instance a contractor on £400 a day could get an offer of up to £384,000.
To find out more, or to apply, you should click on Specialist Contractor Mortgages