Monthly Archives: December 2015

Favourite Contractor Mortgages Brokers

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Favourite Contractor Motgages Brokers

Favourite Contractor Mortgages

My favourite contractor mortgages brokers are those that are specialists in the contractor market.

These guys didn’t exist till ten years ago.

Contractors always found it difficult to get mortgages.

When they went in to see high street banks and building societies, with their new-found wealth, they expected to be welcomed with open arms.

Favourite Contractor Motgages Brokers

Favourite Contractor Mortgages Brokers for deluxe mortgages

Favourite Contractor Mortgages

Favourite Contractor Mortgages from specialist contractor mortgage brokers

Instead, it was just the opposite.

Contractors Too Risky To Loan Money to

The banks and building society managers saw them as a big risk. They didn’t have steady income like a permanent employee.

They saw them as so risky that they wanted to see a track record.

They wanted to see three years worth of accounts.

That meant that you had to have been a contractor for well over three years to have those.

Contractor Mortgage Offer Blow

Then, if they managed to pass that obstacle, they were hit with a blow to the solar plexus.

The mortgage offer they got was just a multiple of their Director’s salary.

Favourite Contractor Mortgages

Favourite Contractor Mortgages from specialist contractor mortgage brokers

Most personal service company contractors keep that deliberately low. They want to take their income in dividends, which are taxed at a lower level.

This is what happened to me when I first wanted to buy a house. I was  sent packing and told to come back in a few years.

Even now, if you walk into a high street bank, or building society, this is the response you will get.

Specialist Contractor Mortgage Brokers

Luckily, with the advent of specialist contractor mortgage brokers, contractors can now get proper mortgage offers.

Contractors can get the best mortgage offers and the best interest rates through them.

There was a huge gap in the market with the growth of the contracting market in the UK.

Contractors were on the outside looking into the deluxe mortgage market.

Those that took on mortgages when they were permanent employees were the lucky ones.

Specialist Mortgages for IT Contractors

However, ten years ago, one mortgage broker convinced one mortgage lender to take a chance and loan money for mortgages to a few IT Contractors.

That worked, so they loaned more IT Contractors money for mortgages.

Instead of being a risk, these IT Contractors paid up their monthly mortgage instalments regularly and had a lower rate of default than on the general market.

Contractor Mortgage Quote

Contractor Mortgage Quote at best rates

As a result, this specialist deluxe contractor mortgage broker got more and more credibility with more and more lenders. They were falling over themselves, then, to loan to contractors.

Mortgages for All Contractors

A couple fo years ago, the mortgage lenders expanded the market to all contractors.

Now, there are more and more great deluxe mortgage offers for contractors from more and more lenders through these specialist contractor mortgage brokers.

As I said, the favourite contractor mortgages are got by those mortgage brokers specialising in getting contractors mortgages.

They can get contractors lower interest rates and higher mortgage offers than contractors could get on the general mortgage market.

The Best Contractor Mortgages

The great news is twofold.

Firstly, contractors can get mortgage offers based on their daily rate annualised rather than using their Director’s salary.

The mortgage lenders take contractors’ weekly rate and multiply that by 48 for a contractor’s annual salary.

They then multiply that by 4 (or even 5 sometimes) to get the mortgage offer they make.

Using Your Contract as Proof of Income

The second great piece of news is that the best mortgage lenders don’t need to see three years worth of accounts before making a mortgage offer to contractors.

Mortgage Brokers for Contractors

Specialist Mortgage Brokers for Contractors in the UK

They just need to see a contractor’s contract ss proof of income.

Indeed they can get a first time contractor a deluxe mortgage offer on the very first day of his, or her, first ever contract.

The favourite contractor mortgages brokers in the contracting market are those that can get the best offers for contractors.

To find out more, or to apply for one of these top class mortgages from the specialist brokers, just click Favourite Contractor Mortgages Application and fill in the form.

5% Contractor Mortgages Deposits Using Help to Buy

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5% Contractor Mortgages Deposit

5% Contractor Mortgages Deposits

5% Contractor Mortgages Deposits are now available to contractors using the Government’s Help to Buy mortgage scheme.

Previously, first time buyers, including first time contractors, were priced out of the market as lenders wanted 25% deposits.

They were spooked by the great banking crisis of 2007/8 and were unwilling to lend except to just the very safest borrowers.

As first time buyers are the ones who keep the cogs of the housing market wheels running, it meant that house prices were stagnating.

New Contractors Looking for Mortgages

New Contractors Looking for low-interest Mortgages

Help to Buy Mortgages for Contractors

The Government’s Help to Buy scheme kick-started the property market.

They guaranteed 20% of the loan when someone wanted to buy a house. That meant that the buyers, including contractors, only had to come up with 5% of the money.

Therefore, that meant that a house had to fall by 25% in value before the high street bank or building society took a hit.

It wasn’t the Government who loaned the money to the borrower. It was the lender that did that.

All the Government did was to guarantee 20% of the loan.

First Time Buyers / First Time Contractors Took Advantage

Of course, the Government knew that if first time buyers, like first time contractors, came onto the market again it would send house prices higher . So it would never cost them a penny.

This was indeed what happened.

Therefore, borrowers were happy as it meant that, as they just had to stump up the 5% contractor mortgages deposit. They could afford this.

Lenders were happy also. A house would have to fall in value by more than 25% before they took a hit.

The Government were happy as there was now a feelgood factor in a rising housing market. This helped get them re-elected in 2015.

5% Contractor Mortgage Deposits via Help to Buy scheme

5% Contractor Mortgage Deposits from Help to Buy scheme

Rising Housing Market for Contractor Mortgages

The great thing about it for them was that it didn’t cost them anything. It was a very clever scheme.

The rising housing market took the risk of losses away from them. It meant that those houses and flats, where they guaranteed the 20%, rose in value well away from the threshold where they would lose out if someone defaulted on their mortgage.

That’s the beauty of the Help to Buy scheme. No one loses.

Specialist Contractor Mortgage Brokers

Contractors who want to take advantage of the Government’s Help to Buy scheme and the 5% contractor mortgages deposit should use a specialist contractor mortgages broker.

If they don’t, they risk being asked to provide three years worth of accounts. They would, also, get their offers based on their Director’s salary if they are a personal service company contractors.

By using a specialist contractor mortgages broker, all you have to provide is a copy of your contract as proof as earnings.

You will also get a contractor mortgage offer based on your daily rate annualised. They assume you work 48 weeks of the year and the mortgage lender will loan you 4 times your annual salary. They might even give you 5 times it.

Help to Buy Mortgages for contractors

Help to Buy Mortgages for UK Contractors

Contractor Mortgage Deposits

Obviously, the more deposit that you can put up the better the interest rates you can get.

However, those specialist contractor mortgage brokers can often get contractors mortgage interest rates at less than the market rate.

To find out more about 5% contractor mortgages deposits using Help to Buy, or to apply, please click on Contractor Mortgage Application and fill in the form there.

95% Mortgages for Contractors with just 6 Months Contracting

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6 months contracting experience

6 Months Contracting

There’s a new lender in the contractor mortgage market – and they’re lending to contractors with as little as 6 months contracting experience. Their name is Buckingham Building Society.

To get a 95% mortgage contractors usually have to have two years experience, at least, as a contractor.

They also have to have a minimum income of £300 a day because of the extra perceived risk that lenders see with contractors.

Best Contractor Mortgages

Best Contractor Mortgages Rates & Offers

Buckingham Building Society and Contractor Mortgages

However, the Buckingham Building society has cut through that. It is offering its mortgages to new contractors with just 6 months experience as a contractor.

Also, there’s no minimum daily rate needed. They will consider all contractors regardless of their contract rate.

Their mortgage offer will be based on the contractors’ daily rate annualised, i.e. their weekly rate multiplied by 48 to get their annual salary and then multiplied by up to 5 again to get the mortgage offer.

There’s no need for contractors to have to provide accounts. All the proof needed is the contractor’s contract.

Specialist Contractor Mortgages

Specialist Contractor Mortgages brokers

Specialist Contractor Mortgage Market

More and more lenders are getting into the specialist contractor mortgage market.

They all used to think it was too risky.

One building society was convinced by a contractor mortgage broker to dip their toes in the water to see if contractors were a good risk.

It all worked out well. The contractors kept up their payments even when out of work and they did not default on their mortgages.

This gave the specialist contractor mortgages broker a lot of credibility and so more and more banks and building societies started to loan to contractors.

The Buckingham Building Society is just the latest.

Contract Based Mortgage Offers

Contract Based Mortgage Offers from Specialist Brokers

Better Mortgage Offers for Contractors

Indeed it looks as if more and more banks and building societies want to hitch a ride on this gravy train.

As contractors give the contractor mortgage brokers more and more credibility, by keeping up their payments, expect better and better mortgage offers for contractors.

Buckingham Building Society are making mortgage offers to contractors, now, who have just 6 months contracting behind them.

Expect there to be more and more offers like this as the banks and building societies see lending money to contractors as not very risky at all.

To take advantage of this offer from the Buckingham Building Society, or other contractor mortgage offers, contact a specialist contractor mortgage broker by clicking on Contractor Mortgage Application and fill in the form there.