Specialist Contractor Mortgages
UK Contractor Mortgage Boom
UK Contractor Mortgages are in great demand with specialist contractor mortgages loans brokers being run off their feet with demand due to Help To Buy.
Previously, lenders who were insisting on 20% and 25% deposits were keeping first time contractors out of the market.
However, the Government’s Help to Buy scheme has allowed contractors to get 95% specialist contractor mortgages loans.
Contractor Mortgages UK
According to the Nationwide Building Society, house prices rose by 0.6% in February alone. That is an annual increase of 9.4% since February last year.
A lot of this is down to the Government’s Help To Buy programme.
Specialist contractor mortgages loans brokers are able to get contractors mortgage quotes within a day or two of being approached.
Furthermore they don’t have to produce 3 years worth of accounts like they would if the contractor walked into a high street bank or building society.
Furthermore, still, they would base their quote on the contractor’s daily rate rather than their director’s salary as a high street bank or building society would.
Contractor Mortgages Loans
So, is the Government creating an artificial bubble in contractor mortgages loans? Certainly the Government want house prices higher to create a feelgood factor before the elections next year.
However, average house prices are still lower than they were in 2007 when the credit crunch hit so they are more affordable than they were then.
Contractor Mortgages Loans Rates have fallen by almost a full percentage point since October when the Government brought in Help To Buy as more and more lenders compete with each other to provide specialist mortgages for contractors.
Contractor Mortgages Boom
We are experiencing the fastest rate of house price growth for 4 years.
The average house price is now £3177,846. That’s still 5% behind what they were 7 years ago.
Lower interest rates and higher consumer confidence in the economy are likely to underpin this market.
Also, builders are building fewer houses. The number of houses built last year was 38% below 2007’s level. So more people are chasing fewer houses which forces prices higher.
House builders are reporting doubled profits with this new surge.
Contractors are piling in to these specialist contractor mortgages loans deals before house prices rise more.
To find out more or apply you should click on Specialist Contractor Mortgages