Help to Buy Fuels
Help to Buy fuels contractor mortgage boom.
Help to Buy, the Government’s new tool to boost the housing market, is helping the Contractor Mortgage market. Tony Harris, an expert in getting contractors mortgages, is seeing the contractor mortgage market go through the roof.
Currently it is only available for new houses. However, from the end of the year contractors will be able to get mortgages for all types of property. With Help to Buy contractors can get 95% mortgages. Previously mortgage vendors have been asking for 20% deposits.
Basically the Government is underwriting the 95% mortgages encouraging people to start buying and selling houses. Their motives are to boost the feelgood factor ahead of the next election in less than 2 years time.
In July house prices rose by 3.3% year-on-year. In June it was 3.3% so it looks s if the market is getting up a head of steam. This looks to be a good time to get in as Help to Buy fuels this market and will help get the market motoring.
There’s still a chance to get into the market outside London and the South East where property prices have only risen by 0.8% in the last year. Any property price rises usually start in London and the South East and gradually spread north from there.
Tony is able to get contractors mortgages at less than the market rate. This is down to his credibility in the marketplace and because previous contractor clients of his have paid back their loans and have not defaulted.
From being seen as risky the track record of contractors in paying their mortgages has meant that new entrants to the mortgage market are getting mortgages at better than market rates.
He gets them mortgages at up to 4 times their daily rate annualised rather than as a multiple of Director’s Pay as high street banks do.
They also don’t need 3 years worth of accounts as they would at a high street ban. All they need is their contract. According to pundits this is a premium time to buy. The Stock Market has already soared but the property market is just starting to get into gear now. Prices will be higher in 3 years time.
Help to Buy fuels this market.
For more info click on Specialist Contractor Mortgages