Category Archives: First Time Buyers

First Time Buyers
Previously, new contractors, who were first time buyers, didn’t have a hope of getting a proper mortgage offer.

A high street bank, or a building society, would have wanted to see three years worth of accounts. They would have sll contractors them as being too risky an investment.

That would have knocked out new contractors for several years. It happened to me when I first started contracting.

I could have bought a house in Maida Vale for £18,000 which would now be worth more than a million pounds.

Mortgage Offers Based on Director’s Salary

Even if you got past that barrier, the mortgage offer would have been based merely on your Director’s salary.

That would have been a killer blow for almost every contractor. It would have been a killer blow for personal service company users, at least.

Contractors keep their Director’s salary as low as possible so that they can pay themselves in divdiends which are taxed at a lower rate.

The Advent of Specialist Mortgage Brokers for Contractors

However, about a decade ago one mortgage broker saw that there was a huge gap in the market. He managed to get one high street lender to take a chance and loan money to contractors.

Those contractors paid up their mortgages regularly and didn’t default.

That gave the specialist mortgage broker credibility with the lender, who loaned more money to contractors, who paid back their loans.

[caption id="attachment_402" align="alignnone" width="200"] Specialist Contractor Mortgages brokers[/caption]

Current Contractors Getting Mortgage Offers More Easily

Because of those contractors, and becasue of this specialist contractor mortagge broker, UK contractors are now able to reap the benefits of this.

Indeed, becasue contractos are so good at paying back their mortgages, these specialist mortgage brokers are often able to get contractors mortgage offers below the current market rate of interest.

What a turn around that is. Most contractors now get their mortgage offers through these specialist contractor mortgage brokers.

[caption id="attachment_589" align="alignnone" width="259"] First Time Buyers get contractor mortgage offers[/caption]

Contractors Renting Property Wasting Money

Posted on August 3, 2016 by admin

Contractors Renting Property

If you are one of those contractors renting property then you may be tossing good money down the train.

You would be far better off buying your own property.

The number of people renting in the age range of 25 to 34 is now 35%. That’s up from 29% previously.

That’s a lot of money going to landlords, therefore, that doesn’t need to.

Contractors of 40 years of age and more who try to get a mortgage to buy a house may find themselves still paying for it in their retirement.

Getting a Mortgage

Many contractors believe that they cannot get a mortgage because:-

Building Societies and banks have told them that they need to be able to show three years worth of accounts
They will be offered a multiple of their Director’s salary rather than using their daily rate
Banks and building societies are asking contractors for large deposits
They will have to pay higher interest rates because their profession is more risky.

Nothing can be further from the truth.

Banks and Building Societies

It did use to be the truth and it still is in many banks and building societies.

However, there are now specialist contractor mortgage brokers operating getting a number lenders to loan to contractors.

Lenders were sceptical at first but saw that contractors were good customers. They made their payments and, largely, didn’t default on their mortgages.

Mortgage Offers to Contractors

So now contractors can get:-

A mortgage offer based on their daily rate annualised
Only their contract needed as proof instead of accounts
Mortgages with small deposits, often just 5% deposits
Interest rates often better than the market rates.

Contractor Mortgage Quotes

Moreover, they can get quotes in the same day as they apply and can usually move into their dream house in a month or under.

According to Shelter, those renting will pay, on average, £41,000 in rent over the next 5 years. That’s 41% of the value of a first time buyers home.

In London it is even worse. Those renting there will pay a whopping £89,000 in rent over the next 5 years. That’s 23% of the value of the average first home.

So, if they took out a mortgage it would only cost them £66,000 in mortgage repayments over the next 5 years. That’s with a 95% mortgage with a 5 year fixed rate.

So, renters will lose out to the tune of £23,000 over 5 years – and they won’t have anything to show for it at the end.

There is no minimum number of years you have to be a contractor before you get a mortgage.

Specialist Mortgage Brokers for Contractors

Specialist mortgage brokers can get first time contractors mortgage quotes on the very first day of their first ever contract.

If a contractor earns £400 a day their mortgage offer would be not too far off £500,000. That’s even if they have just started contracting.

Contractors renting property must be mad.

If you want to find out more and see how much you could get just fill in the form below and someone will be in touch.

Contractor Mortgages – how long do you have to be a Contractor to get one?

Posted on June 19, 2016 by admin

How Long

Contractors always want to know how long you have to be a contractor to get one.

Tony Harris is a specialist contractor mortgages broker. He has been getting contractors mortgages for years. We have heard tales of people walking into high street banks to get a mortgage only to be told that they need to have 3 years accounts with them to qualify.

Many contractors want contractor mortgages soon after they become contractors. With their new-found wealth that comes as a bit of a blow. So we asked Tony the question.

How long do you have to be contracting to get a mortgage? I heard you need three years worth of accounts.

Applying for a Mortgage

Said Tony, “It is true that if you apply for a mortgage yourself on the high street, you will almost certainly need to have access to several years accounts. You will also need to show a steady or rising income from contracting in this time.

“However, we base your mortgage on a multiple of your contract rate alone. We simply need a copy of your current contract, a bank statement and proof of ID to secure your mortgage. The great news is that we can get you a mortgage on your very first day as a Contractor!”

Specialist Contractor Mortgages

So, how long was I told? I wish I’d known Tony when I first wanted to buy a house and get a mortgage after I turned contractor.

I went to a bank. They told me I needed three years of accounts. I thought that was that. Houses in my area in Maida Vale went up from £18,000 for the one I wanted to £96,000 before I was able to buy one.

It’s great that these specialist contractor mortgages are available now.

To get further information or to apply for a mortgage, fill in a form here and they will get back to you:- Contractor Mortgages

Cashback Deals for Contractor Mortgages from Halifax

Posted on April 26, 2016 by admin

Cashback Deals for Contractors

The Halifax have just reported that they are re-launching their special cashback deals for first time buyer contractors.

The deal is that first time buyers will get 1% of the amount they have borrowed deposited into their bank accounts. That will take place within 30 days of the contractors finalising their mortgages.

So ,if a contractor borrowed £200,000, he, or she, would get £2,000 put into their account by the Halifax.

Cashback with Contractor Mortgages of 1%

There is a maximum of £2,000.

Special Deal for Contractors

This is a special deal just for contractors.

After being initial nervous about loaning to contractors, more and more lenders are realising what a lucrative market loaning to contractors has become.

Those first time buyers who can take advantage of the Halifax’s offer don’t have to show a track record of contracting and earning like they used to have to do.

Therefore, all they need to show is a copy of their contract.

Contractor Mortgage Offer

Their mortgage offer would be based on their daily rate annualised, i.e. their weekly rate x 48 times 3 or 4 or 5.

Contractors are becoming more and more popular with mortgage lenders.

They are getting more and better and better offers from them.

The good track record of other contractors who took up specialist contractors mortgages has helped here.

EU Referendum

So, he market is still looking pretty good with the lowest interest rates on record.

Contractor Mortgage Quote at best rates

House prices are likely to rise once the uncertainty of the EU referendum is over. This is especially if it is a vote to stay in.

Markets don’t like uncertainty. So, the mortgage market will be hoping for business as usual after the EU vote with an increase in sales and house prices likely.

Contractor Mortgage Information Pack

To get your information pack on the Halifax’s new offer on cashback deals to contractors just fill in the short form at Specialist Contractor Mortgage Information.

95% Mortgages for Contractors with just 6 Months Contracting

Posted on December 15, 2015 by admin

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 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 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 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.

First Time Buyers Advantage | Cheaper to Buy Than Rent

Posted on September 11, 2015 by admin

First Time Buyers Advantage

Itis time to get a first time buyers advantage for contractors.

They can now get first time buyers contractor mortgages in the contractor mortgage market which suit them as much as all contractors looking for mortgages.

A survey by Halifax has revealed that buyers are £670 better off per year than those renting.

It was reported that the average monthly rent in June 2015 was £722 for a three bedroom property. This compares to a mortgage of £666 for the same size property.

Therefore the average first-time buyer’s monthly mortgage is 8% lower than the typical monthly rent.

Contractors Buying Property in London

Those buying in London could save up to a massive £81 per month this year. The average mortgage cost is £1,338 compared to the average rental cost of £1,419.

The financial benefits of buying versus renting has made quite a leap in the last 6 years.

During the credit crunch buying was 16% more than the average rental cost. This meant you would be paying out £1,154 a year more on your mortgage compared to renting.

Buying Cheaper than Renting

So why in 2015 is buying cheaper than renting?

So, there is now a first time buyers advantage because of historically low mortgage rates

Halifax reported that despite the typical price of a three bedroom house rising by 25% since 2009, mortgage rates have plummeted.

The average mortgage rate was 4.92% 6 years ago in comparison to today’s average mortgage rate of 2.91%.

Contractor Mortgage Market Rates

At the beginning of 2015 rates were at a record-breaking low. They were pushed down by the Bank of England’s base rate, which is currently hovering at 0.5%.

This resulted in a flood of competitive rates into the mortgage market. This enabled Contractor first time buyers to secure a mortgage with a small deposit and record-breaking low mortgage repayments.

Although the Greek crisis seems to be putting pressure on the Eurozone, which could also be delaying Britain first interest rate rise in 8 years, media reports reveal that the prospect of a hike are immanent as the UK’s economy strengthens.

Some high street lenders are already preparing themselves with mortgage rates slowly creeping up.

However the Governor of the Bank of England, Mark Carney, has indicated that base rate rises will be a slow process. Despite the forthcoming increase there are plenty of competitive mortgages deals to be found.

Buying Property vs Renting

Buying your first home is the biggest decision you will ever make.

Many first time buyers find the whole prospect rather daunting. The Royal Institution of Chartered Surveyors reports that just 1 in 5 young buyers find the mortgage process easy.

Therefore it is essential to seek professional financial advice and weigh up the pros and cons before committing to a property purchase:-

Saving For a Deposit

– Saving for a deposit can be a struggle but help is at hand. There are Government schemes that help you purchase your first home with as little as a 5% deposit. Help to buy ISAs will also be launching in the Autumn which will help you save your deposit.

– It’s a big commitment but once you have paid off your mortgage your home will be yours.

– Home improvements can be costly but they can increase the value of your property. So it might be worth finding a project for your first home to help you move up the ladder later.

– If your home increases in value the equity may help you purchase a bigger property or fund your retirement pot.

– Buying can be cheaper than renting.

– If interest rates rise, your repayments will go up. It’s important to prepare for any rate rises and take advantage of cheap fixed rates whilst they last.

This is why there is a first time buyers advantage now.

Specialist Contractor Mortgages

Our partners are experts in helping Contractors to find a mortgage tailored to your unique needs and they have a wealth of experience and knowledge of contractor mortgages.

They are leaders in the specialist contractor mortgages market.

They can take the hassle out of finding the right mortgage rate for you. To find out more please click on Contractor Mortgage Application and fill in the form there.

90% Contractor Mortgages with Cashback at Great Rates

Posted on June 16, 2015 by admin

90% Contractor Mortgages with Cashback

Since the Halifax made a special contractor mortgages with cashback offer through our contractor mortgages partner, dozens of first time buyers have taken advantage and shared tens of thousands of pounds at an average of £2,300.

They expect that the offer will come to an end shortly so it is important that contractors get in now if they want to take advantage of the offer.

Contractors have obtained some of the best rates on the market – and got their cashback too. The Halifax are making this contractor mortgages with cashback offer only through our partners, in order to get a one-off big boost to their mortgage business. The offer will disappear soon.

The cash is being given so that first time buyers can cope with the extra costs of moving in. The Halifax are giving cashback of 1% of the total mortgage costs up to £2,500 paid within a month of completion.

Contractor Mortgages with Cashback Rates

They are offering some great rates too for their contractor mortgages with cashback:-

90% for a 2-year fixed mortgage at 3.44%

85% for a 2-year fixed mortgage at 2.34%

80% for a 2-year fixed mortgage at 2.19%

60% for a 2-year fixed mortgage at 1.64%

Arrangement fees are £1,499 for all of the above.

That’s some pretty good rates especially as they can be locked in for 2 years.

Help to Buy Contractor Mortgages

You can also get contractor mortgages with no arrangement fee for smaller amounts borrowed.

You can also get a 95% contractor mortgage using Help to Buy. The deal is also available for new build and affordable housing.

It doesn’t include Buy To Let or mortgages of over £1 million.

Contractor Mortgage Application

You need to lock in this deal quickly though. Get an agreement in principle as soon as you can.

You need to have made a formal mortgage application before this deal ends. Our partners are ready to help you immediately.

Our partners can get you a quote on the every day you apply. If you get an AIP (Agreement in Principle) for the loan it will help when dealing with the estate agents. You may even get a better price than someone who doesn’t have one as you are ‘ready to go’.

Our partner started the specialist contractor mortgages market 10 years ago. Contractors used to find it difficult to get mortgages previously and had to produce three years worth of accounts and got an offer based on their Director’s salary – which made the offer very low.

Now, our partners can get them offer on production of their contract and at a multiple (up to 5 times) of their daily rate annualised ( x 48). They are happy to give you their expert advice free of charge.

Apply for Contractor Mortgages with Cashback

To find out more about the contractor mortgages with cashback offer or to take up the Halifax offer while you can, you should click on Contractor Mortgage Application and fill in the form there.

Help to Buy ISA for First Time Buyers – Contractor Mortgages

Posted on March 19, 2015 by admin

Help to Buy ISA

Contractors have just had some great news from Chancellor Osborne in his 2015 Budget. He has created a Help to Buy ISA for first time buyers.

The Help to Buy scheme, brought in by the Government has been highly successful. It has provided the feelgood factor that the Government wanted going into the General Election in May.

Previously, lenders were asking for 20% and 25% deposits to first time buyers and they just didn’t have it. First time buyers are crucial for a healthy housing market. Their inability to get into the market was depressing prices.

So, the Government guaranteed 20% of the deposit. This meant that those first time buyers were able to get 95% mortgage again. They did so in droves.

This helped to push house prices up which engendered the Government’s feelgood factor. This, in turn, has brought the Conservatives level with Labour in the polls.

New Help to Buy ISA

Now, the Government has gone further and created the Help to Buy ISA.

It enables first time buyers to be able to save tax-free for a mortgage deposit in an ISA. Not only that, for every £200 a first time buyer saves the Government will add a further £50.

That should help!

Furthermore, it means you are able to increase your deposit by 25%.

It’s a huge boost to first time buyers, including contractors taking out contractor mortgages.

Help to Buy ISA in the Autumn

Said Emilie Heaney, an expert on both the contractor mortgages market and the ISA for contractors market:-

“Contracting first time buyers will be able to start saving in these special ISAs in Autumn 2015. You will need an initial deposit of £1000 to open a H2B ISA and can use it to save for homes worth up to £450,000 in London and £250,000 in the rest of the UK.

“So, your £1000 you will benefit from a £250 uplift from the Government.

“Overall this will be further positive news for the housing market starved of first time buyers with enough of a deposit to take that all important first step and should encourage a generation of new savers and we commend this to the house”.

To get in the queue for one of these new Help to Buy ISA products fill in the form here ISA Form

Rent to Own Scheme proposed by LibDems – Contractor Mortgages

Posted on March 16, 2015 by admin

Rent to Own Scheme

The LibDems have announced a new Rent to Own scheme before the coming General Election. This is to be implemented between 2015 and the next election in 2020.

It is for first time buyers, especially those who cannot put together the deposit for their first home.

They have designed the new Rent To Own scheme to help new buyers to build up a stake in their homes via renting.

First Time Buyers

Getting started in the market is a huge problem for first time buyers. The typical first time buyer in London will need a deposit of over £60,000 if they wan to buy their first home.

They would pay what they would pay in rent, at a market rate, for 30 years. After that they would own their own home.

There would be something at the end of it for them – ownership of their own home.

Dream of Home Ownership

According to Nick Clegg, the LibDem leader:-

“For working young people the dream of home ownership is increasingly out of reach. Prices are so high renters cannot afford to save for a deposit, which means they can never take that first step onto the housing ladder.

“Rent to Own will mean, regardless of their background and family circumstance, they will be able to make this a dream a reality. This is about building a stronger economy and fairer society, and making sure Generation Rent has the same opportunity to get on in life as their parents and grandparents before them.”

Higher Monthly Payments

It is expected that the monthly payments for Rent To Own will be higher than if they took out a mortgage on the property.

It is being suggested that, in London anyway, it will mainly benefit those on higher incomes.

The Housing associations would build the new houses for the Rent to Own scheme.

The LibDems plan to have 30,000 homes in the Rent to Own scheme by 2020.

Paying Rent

While they will be paying more than mortgage holders for their properties there will still be people who benefit out there.

There are millions of people who have been paying rent on their houses for years out there. The very cost of the rent prevents them from being able to save up for a mortgage deposit.

They might as well have been paying that rent towards being able to own the house after 30 years.

First Time Buyers Mortgages Bonanza | Contractor Mortgages

Posted on January 30, 2015 by admin

First Time Buyers Mortgages

We are seeing a real a boom in First Time Buyers Mortgages. 2015, already, looks like a great opportunity for Contractors to buy their own homes.

Now, our mortgage partners, have announced a new low start mortgage that’s only available here for contractors.

Property Market

Boris Johnson has just announced two new deals which will help First Time Buyers Mortgages and allow Londoners to get on the housing ladder for the first time.

Those who don’t live in London, therefore, don’t qualify for these offers. However, our partners are working on getting similar deals for contractors in other places in the UK.

Indeed, they have great news of another new first time buyers mortgages deal that is available to all contractors in the UK. This comes from a first time buyers mortgages deal they have with a mortgage lender.

Contractor First-Time Buyers Mortgages Deal

Mainly due to the Government’s Help to Buy scheme, the number of first time buyers is up by 50% in just 2 years. the Halifax Building Society say this sector is at a 7 year high. It predicts that 2015 will be even better.

In response to this our mortgage partners have found a contractor-friendly building society who are happy to provide low-deposit first time buyers mortgages.

This great offer is only available to contractors through our mortgage partners. It gives contractors a 5% deposit mortgage with it being interest-only for the first 3 years. That’s a pretty good deal in this market. It goes back to being a repayment mortgage after that.

Low Start Mortgage Deals

The low start mortgage offers:

– A 3 year variable rate at 4.45% based on a 95% Loan to Value (LTV)
– Or a 3 year variable rate at 3.75% based on a 90% LTV
– Interest only for the first 3 years, reverting to repayments thereafter
– Based on our specially negotiated income measure of annualised contract rate, donâ€™t need to prove your income with 3 years accounts
– £500 arrangement fee that can be added to the mortgage
Free valuation on your chosen property
– No penalty for overpayments, as long as you donâ€™t repay the full mortgage amount within the first 3 years

First Time Buyers Mortgages Partner

Our mortgage partners don’t charge a fee for arranging your mortgage. Other specialist contractor mortgage brokers charge up to £695 as an arrangement fee. So, you get their advice free.

To find out more, or to apply, fill in the mortgage form on this page:-

Specialist Contractor Mortgages

Best Contractor Mortgages Deals for UK Contractors

Posted on December 3, 2014 by admin

Best Contractor Mortgages Deals

The Best Contractor Mortgages deals can be got from Specialist Contractor Mortgages brokers in the UK.

The Foolish Contractor walks into a high street bank or building society to ask for a contractor mortgage. The bank or building society tell him or her:-

1. As you are a contractor and your income is not as secure as that of a permanent member of staff, we would have to get three years worth of accounts from you

2. We will base any offer to you on your Director’s Salary.

Foolish Contractor

Many years ago, I was a foolish contractor. I didn’t know about specialist contractor mortgages brokers in the UK. I simply decided that I would have to wait a few years to get a mortgage for a house or flat. However, it wouldn’t be a great place I could afford if it was only based on my Director’s salary.

So, I continued to waste tens of thousands of pounds by continuing to rent.

However, if I had known about specialist contractor mortgages brokers like Tony Harris all those years ago I would be much richer now. Tony has been getting the best contractor mortgages deals for years.

He started by getting specialist contractor mortgages for IT Contractors. Now he can get those specialist contractor mortgages for all contractors.

Initially lenders were wary about lending to contractors. However, Tony managed to talk them into dipping their toes in the water.

Now, because those initial contractors have paid up on their mortgages and very few have defaulted, Tony has great credibility with the lenders. He can often get contractor mortgage offers at better rates than the marketplace.

Crucial Factors

However, here are the two crucial factors:-

1. He can get contractor mortgage offers based on their daily rate annualised (daily rate x 5 x 48 x 4).

2. He can get the quote just on production of the contractor’s contract, rather than the lender having to see 3 years worth of accounts.

In other words, he can get the best contractor mortgages deals on the marketplace for his contractors. Furthermore, he can get new contractors the best contractor mortgage offers on the very first day of their very first contract. This has revolutionised the contractor mortgages market.

Best Contractor Mortgages Deals

To find out more info or to get the best contractor mortgages deals and a quote click on Specialist Contractor Mortgages

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