Specialist Contractor Mortgage

Specialist Contractor Mortgage using a broker

Specialist Contractor Mortgage

You should always get a specialist contractor mortgage rather than walking into a high street branch.

Many contractors make the mistake, when looking for a mortgage, of walking into their local High Street bank or building society and asking for a mortgage there.

What happens is that the lender is not used to dealing with contractors and has no specialist contractor mortgages. They then tell the contractor that they need to produce three years worth of accounts. Usually you must be a contractor for at least 4 years to have those.

If the contractor can’t provide those then that is a deal breaker. The contractor goes away believing that he, or she, has to wait a few years before applying for a mortgage.

Based on Director’s Salary

Even if the contractor has more than four years’ experience and can produce the accounts, the next obstacle that they face is that the high street bank or building society only count the amount that the contractor is paid as a director. They then multiply that annual salary by 3 or 4 to work out how much they should loan the contractors.

As we all know, contractors like to pay themselves as little as possible so that they can take more of their money in dividends.

What the contractor should have done is to contact a specialist contractor mortgages broker.

Daily Rate Annualised

They have a good reputation with those who loan money. So, they can get contractors a mortgage without having three years of accounts. This is very useful. That’s because one of the times when contractors want to buy a house is when they first start contracting and have more spare money.

The second way that the specialist contractor mortgages broker can help is that they can get contractors mortgages based on their overall income. It is based on their whole daily rate translated to an annual amount.

The multiple is on that sum and not on their director’s salary. This makes a huge difference on the mortgage offer.

So, it’s always wise to get a specialist contractor mortgage.

Here’s one of those Specialist Contractor Mortgages

Specialist broker – Why Contractors should use them

Specialist Broker

Specialist Broker

Tony Harris is a specialist broker of contractor mortgages. He has been getting contractors mortgages for many years. So, I thought I would ask him why contractors should use a specialist broker like him rather than go direct to those that give out mortgages.

I asked him “Why should I go via you when I can just walk into a high street bank or building society? What differentiates you?”

Contract Based

With over fourteen years experience as a specialist broker and of negotiating our contract based mortgage underwriting, we have built unrivalled relationships with lenders.

If you go in to a high street bank and present your accounts, the mortgage adviser will only see your net income. This should be considerably less than you are actually earning (if your accountant is doing his job). So, this could severely limit the amount you can borrow.

Annual Contract Rate

Instead we use our contacts to secure your mortgage based on a multiple of your annual contract rate. This is irrespective of how long you have been contracting. It also doesn’t matter how long you have left on your current assignment.

This invariably allows our clients to borrow far more than they could even when they were a permie. It also saves the trouble of collating years of accounts or projections. This is the standard requirement if you were to go in-branch.

Mortgage Lenders

We understand that you live a very hectic lifestyle and have tailored our service to match.

We won’t need to see you face-to-face for a lengthy meeting as our entire service is offered online, via email and by phone. We do all the running for you, liaising with solicitors, lenders and estate agents so you don’t have to.

You will have one contact who will guide you through the process and is on hand to answer any questions you may have, leaving you free to concentrate on the needs of your client.

Best Mortgage Rates

That answers that then. It would be a foolish contractor who walked into banks asking about their contractor mortgages.

Tony uses his credibility in the marketplace to help get contractors the best mortgage rates available and the highest offers.

To get further information or to apply to a specialist broker for a mortgage, fill in a form here and Tony will get back to you:- Mortgages for Contractors

How quickly can you get Contractor Mortgages?

How Quickly Can You Get a Contractor Mortgage

How Quickly

We asked top specialist contractor mortgages broker Tony Harris how quickly he could get contractor mortgages. Was it a long-drawn out process? Here is how he replied.

“Our advisers will carry out an initial consultation via phone or email lasting 10-15 minutes. Once we agree which lender best suits your needs an agreement in principle can be secured. This will be within a matter of hours of your initial call or email.

“This gives you real clout when negotiating with estate agents etc. That’s because it shows the lender is broadly in agreement that they will lend you the money and that you can move quickly with any purchase.

Property Offer

“They would be assured that once you a seller has accepted your offer on a property, we’d agree a competitive interest rate scheme with you that meets your requirements and the application would go live straight away.

“After receipt of your initial instruction the whole process of underwriting, valuation and legal to you getting the keys to your new home in 4-8 weeks.

“It helps to speed things up, to get contractor mortgages, if you have the necessary documentation to hand. However, because we are able to do everything remotely via phone and email, the application is hassle free. It’s much faster than if you were to apply through a high street bank branch”.

Contractor Mortgages

That sounds pretty speedy to get contractor mortgages. It would put you to the head of the queue if you were bidding for a house.

Tony reckons that they can get a new contractor mortgage offers on the very first day of the new contractors first contract. They could have the new contractor in his, or her, dream house in less than a month.

To get contractor mortgages or further information or to apply for a mortgage, fill in a form here and Tony will get back to you: – Specialist Contractor Mortgages

Contract Nurses Can Now Get Great Mortgage Offers

Contract Nurses Great Mortgage Offers

Contract Nurses

Contract Nurses can now take advantage of specialist mortgages from specialist contractor mortgage brokers.

These brokers can get them the best mortgages offers at the best market rates.

These specialist mortgage brokers came into the market around 10 years ago.

They were mainly, first of all, for IT Contractors. Previously mortgage lenders had considered contractors too risky to lend to.

Monthly Mortgage Payments

Therefore, they had to produce three years worth of accounts and only got mortgage offers based on their director’s salary, which contractors usually kept low to take their money in dividends.

Furthermore, the new contractor mortgage brokers were able to get contractors mortgage offers based on their daily rate annualised – without having to produce accounts. All they had to show was their contract.

These IT contractors made their monthly mortgage payments and had a low level of default.

So, a few years ago, these mortgage lenders decided that they would offer specialist contractor mortgages to all contractors including nurses.

Now, specialist lenders have expanded the market and nurses are able to take advantage of that.

So, contract nurses can now get mortgages as easily as any other contractors.

To apply just click on Contractor Mortgage Application

If you fill in the form, someone will be in touch to explain it more.

 

Best Deals Around for Contractor Mortgages

Best Deals

Best Deals

Specialist Contractor Mortgage Brokers offer the best deals for contractors.

Indeed, those specialist brokers have multiple lenders in tow that they can approach on behalf of the contractor in order to get the best deals available for them.

Gone are the days, however, when contractors were told by banks and building societies that they must produce three years worth of accounts and would get mortgage offers based on their director’s salary rather than their daily rate.

Contractor Mortgage Quote

Contractor Mortgage Quote at best rates

So, that would come as a shock to contractors who expected the red carpet to be let out for them on the back of the huge amounts of money they were now earning.

I say ‘gone are the days’ but if a contractor walked into a bank or building society on the high street, even now, that is exactly what they would be told.

So, that is why contractors use specialist broker who specialise in getting contractors mortgages with the best deals possible.

Best Deals Available for Contractors

So, what are the best deals available, at the moment, through these specialist brokers?

There are 3 that catch the eye.

Firstly there is a 2-Year Tracker Mortgage where the Loan to Value is 60%, i.e. you need a deposit of 40%.

That’s at a rate of just 0.79% plus base rate (currently 0.5%). That ends at the end of March in 2018.

Secondly, there is the 2-year fixed loan at 1.8% where a deposit of 25% is needed. Again that runs out at the end of March 2018.

Finally there is the 2-year fixed loan at 1.89% plus base rate (currently 0.5%). That runs for two years and the deposit needed is only 10% of the loan value.

Cheap Mortgages for Contractors

So, mortgages have never been so cheap – especially for contractors.

IT Contractor Mortgages interest rates

IT Contractor Mortgages offers

First of all, mortgage lenders used to charge them a premium before the advent of specialist mortgage brokers.

Now those specialist brokers can get contractors mortgage offers based on their daily rate annualised – with only their contract as proof of earnings.

What’s more they can get mortgage offers on the same day as they apply because of these brokers.

Indeed, first time contractors can get a mortgage offer on their very first day on their very first contract.

Therefore, to get further info just fill in the form here and a specialist broker will be in touch.

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Favourite Contractor Mortgages Brokers

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.

House Prices to Rise 20% in Five Years

House Prices to rise for for UK Contractors

House Prices for UK Contractors

The fear, for UK Contractors of falling house prices, once interest rates go up, has subsided somewhat for UK Contractors.

It’s OK securing a fixed low-interest mortgage, while you can still afford it,  before interest rates go up, but there is the fear, for contractors, that they may be buying at the peak of the boom.

After all, if there are fewer people able to afford to buy houses, because they are now more expensive to buy, then the economic laws of Supply and Demand kick in.

Interest Rates to Stay Low Longer

However, there are two mean reasons for believing that their fear is misplaced.

Firstly, statements from the Bank of England are now suggesting that interest rates will stay low for a lot longer than originally believed.

Indeed, the Bank had been saying that they expected to be looking closely at interest rate rises by the end of this year or in the first quarter of next year.

Now they are saying that interest rates are likely to stay on hold for much longer – maybe another 18 months.

This is because there has been a drag on the UK economy from problems in China and the Euro area.

Contractor Mortgages Safer

By now, the economist were expecting the UK economy to be roaring along with inflation starting to bite.

However, the UK is predicted this year to have non-inflationary growth of around 2.6% and 2.5% next year.

Inflation has virtually disappeared.

It could be some time before we get inflation in the economy to a degree that causes the Bank to increase interest rates.

House Prices to Rise

Also, a report out this week predicts that house prices in the UK will rise by an average of 20% over the next five years – and that would be even with expected interest rate rises.

Here’s the table of expected average house price rises by region of the UK.

21.6% – South East

21% – East

20% – SouthWest

17% – East Midlands

16.5% – West Midlands

15.3% – London

14.8% – Wales

14.2% – Scotland

14.2% – Yorkshire and Humber

12.7% – North West

12% – North East

Contractor Mortgages

It looks like even London, were house prices are already high, they will continue to rise in a non-inflationary environment.

If inflation stays low, as it seems to be doing at the moment, these could be real rises in house prices rather than just inflationary rises.

This has a knock on effect for specialist Contractor Mortgages

Specialist Contractor Mortgage Brokers

Specialist Contractor Mortgage Brokers can get contractors mortgages without having to produce three years’ worth of accounts or based on Director’s salary as would happen if contractors walked into a high street bank or building society.

They can get mortgages for contractors based on their daily rated annualised (based on 48 weeks a year) and on just the production of their contracts.

For more info, or to apply, just  click on Contractor Mortgage Application and fill in the form there.

Cheaper Contractor Mortgages Could Be Here for 18 Months

Cheaper Contractor Mortgages

Cheaper Contractor Mortgages Rates

It looks like cheaper contractor mortgages will be with us for some time now.

It was thought that Bank of England interest rates would soon be on the way up, pushing up the price of contractor mortgages.

The Governor of the Bank of England had hinted that they could be going up by early next year.

He had said that late this year, they would be monitoring the situation closely.

Interest rates on contractor mortgages had started to rise in anticipation of a rate rise coming within months.

Mortgage Rate Increase Unlikely

So, the contract Mortgage market got a pleasant surprise when the Bank of England announced that the first increase was unlikely to come before May 2017.

That means that we could have low mortgages rates for 18 months or maybe even more.

Cheaper contractor mortgages could be here for a while.

The Bank of England had expected that inflation would be starting to rise by now.

However, inflation is keeping itself very low at around zero.

This is because problems in the world economy, and especially in the Euro area and China, are keeping the UK economy from roaring ahead.

Lower Economic Growth Keeping Interest Rates Down

Indeed the Bank decreased, slightly, their estimates for growth in the UK economy this year and next year.

The Bank has taken down its predicted growth in the economy from 2.7% to 2.6% this year and from 2.6% to 2.5% next year.

Normally, at this stage in the cycle, the economy would be roaring ahead with 3% to 4% growth and with inflation starting to rear its head.

However, deflationary conditions in the world economy are keeping the UK to non-inflationary growth levels.

Indeed, the Bank said that inflation would only be 1% by the end of next year. This is hardly the runaway inflation that could cause interest rates to rise.

This is very good news for contractors and the specialised contractor mortgages market.

Mortgages for Contractors to Remain Cheap

According to one mortgage broker, it could mean contractors getting even cheaper rates than before with the first interest rate hike perhaps 18 months away.

Currently, contractor mortgage rates are about as low as they have ever been. Yet expect them to go even lower in the coming weeks as lenders adjust to the new scenario of low-interest rates for a longer period of time.

They will start to reverse the increases they had put on interest rates in anticipation of a base rate rise.

Cheaper contractor mortgages are on the way.

Better Mortgage Offers for UK Contractors

The advent of specialized mortgages for contractors, in recent years, mean that contractors can now get better offers than they used to get, at lower interest rates, and they don’t, now, have to produce three years worth of accounts.

They no longer get offers based on their Director’s salary.

That’s provided they use specialist contractor mortgage brokers rather than walk into high street banks or building societies.

Mortgage Offers for Contractors

Nowadays, contractors can get offers of 4 times their daily rate annualised – just on production of their contract. It’s taken that contractors work 48 weeks a year.

So, a contractor earning £500 a day gets £2,500 a week, or £120,000 a year.

With a mortgage offer of 4 times salary that equates to a potential mortgage offer of £480,000.

To take advantage of these lower rates, contact a specialist contractor mortgage broker for more info, by filling in the form below.

Please click on Contractor Mortgage Application and fill in the form there.

Contractor Mortgages Rate Rise Comes Ever Closer

contractor mortgages fixed rate mortgages

Contractor Mortgages Rate Rise

Today, the Bank of England decided to keep bank rates on hold, for now. However, the day is coming closer and closer when the Governor of the Bank of England will announce a contractor mortgages rate rise.

This would push up the cost of mortgages for UK contractors. Many smart contractors have been taking out fixed rate contractor mortgages while they still can.

However, already the cost fo fixed rate mortgages is starting to rise as lenders anticipate the next base rate rise.

Rate Rises for Contractor Mortgages

It was expected that the base rate rise would happen by the end of the year. However, it is more likely to be in the first quarter of next year before mortgage rates go up.

We have had record low-interest rates for six years now as the Government sought to fight the savage downturn. However, the downturn is over now and the next change in base rates will now be up. It is just the timing now.

As well as mortgage being more expensive for contractors, when base rates do go up, they will also be able to borrow less.

Mortgages Expensive for Contractors

When base rates go up they can often go up rapidly in more than one hike. The reason is that they go up to stop inflation and to stop the economy overheating. However, it takes months for this to take effect.

With the economy overheating even more, and inflation increasing, the Panel and the Governor of the Bank of England will keep looking for more rises.

This could make mortgages much more expensive for contractors. That is unless they take advantage of the current fixed rates on offer at specialist contractor mortgage brokers.

Many of those contractors on variable rate mortgages, who have been enjoying low mortgage rates for six years now, will get quite a shock when their monthly payments start to rise in maybe several chunks.

Fixed Rate Mortgages for British Contractors

It would be a good time for them to swap into a fixed rate mortgage. That would take away any nasty surprises that are likely to start in the first quarter next year.

However, it would be wise not to wait till then. This is because the rates for fixed rate mortgages are likely to rise before then, in anticipation of base rate rise to come. The sooner they change over to fixed rate mortgages, the better, and the cheaper it will be for them.

To find out more, before a contractor mortgages rate rise, or to apply for a fixed rate contractor mortgage from a specialist contractor mortgages broker, just click on Contractor Mortgage Application and fill in the form there.

Cheap Contractor Mortgage Deals End Comes Nearer

contractor mortgages

Cheap Contractor Mortgage Deals

We have had some of the best cheap contractor mortgage deals we have ever had over the past few years. Mortgage rates have been unbelievably low, historically, in recent years.

This was caused by the savage economic downturn and efforts by the Bank of England to boost the economy by keeping interest rates at their lowest rates ever.

However, that could be all coming to an end in the next few weeks.

Interest Rate Rises

Bank of England Governor, Mark Carney, has recently stated that he expected to be considering higher base rates by the year’s end.

That statement in itself is causing forward market interest rates to rise.

This is putting pressure on the fixed rates over 2, 3 and 5 years that banks are giving.

It seems that the cost of funding these deals has jumped by 10% in recent weeks. The banks won’t suck that up for too long.

Contractor Mortgage Rates

Lenders are expected to increase their fixed interest mortgage rates over the coming weeks hitting contractor mortgages hard.

Best Contractor Mortgages

Best Contractor Mortgages Rates & Offers

Low interest rates have been around for a while. If anyone wants to take advantage of cheap contractor mortgage deals then now is the time to do it.

We are unlikely to see such low-interest rates again – and they have just weeks, even days, to go.

The first tweaks to interest rates are expected to take place over the next week or two. This will just be the start.

Contractor Mortgage Market

The competitive contractor mortgage market has kept prices low but, with the cost of money that the banks can borrow rising, the dam is about to burst and banks and mortgage lenders will have to push rates higher very shortly.

Base rates have been at 0.5%, an astonishingly low-interest rate, for 6 years. This will never happen again.

They are expected to rise by the end of the year but fixed interest mortgages are already rising in anticipation of that rise. The cost of money is rising.

Long Term Fixed Rates

Those wanting longer term fixed rates need to get those now.

There has been a rush of mortgage applications over the last few weeks as house buyers rush to get those once-in-a-lifetime deals.

Cheap contractor mortgage deals are coming to an end. There are only days, or at most weeks, to take advantage of this.

Specialist Contractor Mortgages

Tony Harris has been getting contractors specialist contractor mortgages for years now. Through hin 95% contractor mortgages are now available for all contractors.

UK Contractor Mortgages articles

UK Contractor Mortgages articles

He can get them cheap contractor mortgage deals based on just their contract and with mortgage offers of up to 4 times their daily rate annualised (weekly rate x 48).

If contractors went to a bank or building society they would have to produce three years worth of accounts and get a quote based on their Director’s salary.

For more information click on Contractor Mortgages.

To find out more, or to apply before rates rise, just click on Contractor Mortgage Application and fill in the form there.