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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    Contractor Mortgage Offers Based on Contract Value

    Contract Value - Contractor Mortgage Offers at best rates

    Contract Value

    Specialist brokers can get contractors mortgages based on their contract value.

    Most lenders don’t understand contractors when making contractor mortgage offers. They don’t know how they operate.

    They should, as most of them employ heaps of contractors in their IT departments and other departments.

    However, those at banks and building societies who are the ones who decide if contractors should get mortgages are not the same people who interact with contractors in their computer departments.

    Best Contractor Mortgages

    Best Contractor Mortgages Rates & Offers

    Contractors Risky to Lend To

    From their point of view contractors are a big risk.

    As they don’t have permanent (and secure) jobs they need to show a track record.

    So, they ask to see 3 or more years worth of accounts.

    Mortgage Offer Based on Director’s Salary

    Now, what they are used to dealing with, when they make their mortgage offers, are salaries.

    They then make an offer based on a multiple of a person’s salary.

    They get the contractor’s accounts and peruse it for something they know.

    “Ah, there it is” they think. “There’s the director’s salary. We will multiply that by 3 or 4 or 5 and make the contractor an offer based on that.”

    The contractor would have been better to try to get a mortgage before he turned contractors.

    Specialist Contractor Mortgage Brokers

    Contract Based Mortgage Offers

    Contract Based Mortgage Offers from Specialist Brokers

    However, in the past few years, specialist contractor mortgage brokers have managed to convince some lenders that the contractor market could be a lucrative one for them.

    They convinced one or two lenders to give it a go and lend to a few contractors.

    The results were good. The contractors paid their mortgages regularly and didn’t default.

    So, they gave out more and more mortgages.

    Daily Rate Annualised

    They based these mortgage offers on the contractor’s daily rate annualised rather than their director’s salary.

    They also only needed to see the contract as proof of earnings.

    In the beginning the lenders were quite conservative when lending to contractors.

    However, they gradually relaxed once they saw that contractors were actually quite good payers.

    Despite the uncertainty of working as a contractor, they were able to organise themselves into making regular payments even when they were out of work.

    More and More Mortgage Offers for Contractors

    As a result, specialist contractor mortgage brokers are able to get more and more mortgages for contractors from more and more lenders.

    What’s more, it is at high street rates or sometimes better.

    Every so often they get a special mortgage offer just for contractors based on their contract value.

    Specialist Contractor Mortgages

    Specialist Contractor Mortgages brokers

    Contractors now have access to a growing number of lenders and a growing number of mortgage offers.

    The process is pretty quick too.

    You can normally get contractor mortgage offers on the very day you ask for one, providing you have all the details and could, potentially, be able to move into your dream house anywhere between 2 and 6 weeks after you sought the offer.

    Applying for a Contractor Mortgage

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

    Contractor Mortgages Lender Allows for Breaks Between Contracts

    Contractor Mortgages Lender

    Contractor Mortgages Lender

    In a new breakthrough, a brand new lender has turned the contractor mortgages market upside down.

    It used to be that it was very difficult to get a mortgage if you were a contractor.

    Many contractors, with their new contract rates, double what the earned as permies, expected to be welcomed with open arms by high street banks and building societies.

    However, they were seen as risks by them. Contractors had to produced three years of accounts which scuppered new contractors for several years.

    Specialist Contractor Mortgages

    Specialist Contractor Mortgages brokers

    I know. It happened to me when I first started contracting. I was shocked.

    Offer based on Director’s Salary

    What’s more they only offered you mortgages based on a multiple of contractors’ director’s salary.

    As we all know contractors like to keep this as low as possible. They don’t want to hit the upper rate of tax and so take much of their money in dividend payments.

    You would have been better off applying for a mortgage as a permie before you went contracting.

    Contractor Mortgage Brokers

    However, in the past decade specialist contractor mortgage brokers have sprung up.

    They have convinced mortgage lenders to loan to contractors.

    Contractors could now get mortgage offers based on their daily rates instead of director’s salary

    They could also get mortgage approval with just their contract as proof rather than having to produce three years worth of accounts.

    Many contractors are taking advantage of these offers obtained through these specialist mortgage brokers.

    Contractor Mortgages UK

    Contractor Mortgages UK based on daily rate annualised

    This was much better for contractors – although the lenders were still a little conservative.

    Bluestone Mortgages

    Now, a new lender, Bluestone Mortgages, backed by the private equity arm of Lloyd’s Bank, have come up with a mortgage much suited to contractors.

    This new flexible contractor mortgage would suit those contractors who like to take time off between contracts.

    Even more importantly, it will suit those forced to take time off between contractors.

    Many a sleepless night has been spent by contractors who have all their bills to pay whilst not knowing when they will get their next contract.

    Breaks in Contract Work

    Bluestone Mortgages are showing a great understanding of the contracting profession.

    Previously contractors would find it difficult to get a mortgage if they had any break in contract work in the past year.

    Now Bluestone Mortgages will allow up to a 6 month break in the past year.

    They will also take a flexible view of any missed payments that are on a contractor’s credit file.

    Knowing how contracting works they are even accepting the odd serious credit transgression showing on the contractor’s credit file.

    Best Mortgage Deals for UK Contractors

    Best Mortgage Deals that UK contractors can get

    Major Breakthrough

    This is great news for contractors and a major breakthrough in the specialist contractor mortgage market.

    This new contractor mortgages lender is the perfect fit for contractors of any mortgage lender so far.

    To find out more from the specialist contractor mortgages broker who negotiated this deal with Bluestone Mortgages simply fill in the form below and someone will be in touch.

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

    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.

    5% Contractor Mortgages Deposits Using Help to Buy

    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

    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.

    Contractor Buy To Let Action Needed Now

    Contractor Buy to Let investment

    Contractor Buy To Let

    The Chancellor hit Contractor Buy to Let properties in the Autumn Statement.

    Contractors got off lightly in the Autumn Statement.

    Chancellor Osborne didn’t carry out most of the threats he made, beforehand, or he at least watered them down.

    However, contractors who have invested their money in property have not fared so well. The Chancellor is going to hit them next year.

    Buy To Let Purchases

    Buy to Let purchases went up by 36.4% in September compared to August.

    That’s despite the withdrawal of interest mortgage relief by the Chancellor.

    Costs will go up a lot from April next year which is when the levy gets rolled out.

    Contractor Buy To Let

    Contractor Buy To Let

    Let to Buy Stamp Duty Rises

    The cost of stamp duty for a Buy To Let of £250,000 will go up from £2,500 to £10,000.

    That’s four times what it was before and a hefty increase.

    So, how much of a problem is this for Buy To Let contractors?

    Freelancers have traditionally invested in the stock market and property to try to use their contractor earned money to try to make more money.

    This is unlikely to change.

    Mortgage Interest Relief

    However, smart contractors will be making their Buy To Let purchases ahead of next April when the change comes in.

    This will save them thousands of pounds in stamp duty.

    As regards Mortgage Interest Relief, here is how does the change will impact on contractors.

    At the moment, contractors only pay tax on their rental income after deducting their monthly interest payments and some allowable expenses.

    Tax will then paid on the profit at the contractor’s highest marginal rate of income tax.

    So, it looks like UK contractors, who are heavy investors in property, will be stampeding to buy new properties, using Buy to Let before next April.

    The sooner they start the better as everyone know how long it can be from staring a property search to actually completing a deal.

    There won’t be a better time for Contractor Buy to Let opportunities.

    Contractors Buying Property

    Contractors Buying Property for investment

    Specialist Contractor Mortgage Brokers

    Contractors are much better using specialist contractor mortgage brokers when buying a property. They can get contractors better rates.

    They can get them offers using their daily rate annualised rather than their Director’s salary which a hight street bank or building society would do.

    Offers are all on production of your contract instead of the three years worth of accounts that the banks and building societies would ask for.

    To find out more info from the specialist contractor mortgage  broker, or to apply, just click on Contractor Mortgage Application and fill in the form there.

    40% Deposit Interest Free Present to Londoners from Government

    40% Deposit Interest Free

    40% Deposit Interest Free

    Londoners are to receive a 40% Deposit Interest free from the Government. This is according to an announcement in the Autumn Statement for Chancellor George Osborne.

    That was a major rabbit that he pulled out of his hat, completely out of the blue.

    This is under the Help to Buy scheme.

    Help to Buy Scheme

    The Help to Buy scheme has worked very well outside London but not very well in London.

    The Government offered 20% deposits, interest free, to those wanting to get on the property ladder.

    However, this was not much use in London where property prices have soared out of all recognition.

    A nice flat in a decent area could cost you close to a million pounds.

    So, offering them a 20% deposit wasn’t going to do the trick.

    IT Contractor Mortgages

    Indeed, even IT Contractors, who are pretty well paid, would struggle to buy a first home in London.

    A contractor who earned £400 a day would be able to borrow close to half a million using specialist contractor mortgage brokers.

    However, he, or she would be left scratching around, even at that, for a home in a decent area.

    So, now contractors in London, who wish to purchase a new home, will qualify for this 40% deposit.

    5% Deposit for UK Contractors

    With this new initiative, or latest version fo the Help to Buy scheme, contractors would need to stump up jus a 5% deposit and the Government will stump up another 40%.

    This will leave lenders just needing to stump up a further 55%.

    Because the lenders are loaning just 55% it means that they are likely to loan money at lower rates than a lender asked to stump up 90% or 95%.

    40% Deposit Interest Free laons for London contractors

    40% Deposit Interest Free loans for London contractors

    Nationwide Mortgages Just for Contractors

    It’s expected that the Nationwide Building Society are going to want to have a piece of this action.

    One specialist contractor mortgage brokers have a current deal with them to get contractors mortgages at great rates.

    A high street building society, or bank, would ask contractor to produce three years worth of accounts to get a mortgage offer.

    They would base that mortgage offer on a multiple of their Director’s salary.

    That’s not much use.

    This specialist contractor  mortgage broker has a deal with the Nationwide specially for them that provides mortgage offers to contractors just on production of their contract.

    House Prices to rise for for UK Contractors

    House Prices for UK Contractors

    Mortgage Offer based on Daily Rate

    Furthermore, they will base that mortgage offer on their daily rate annualised.

    So, if their daily rate was £400 a day, the offer would be likely to be £400 x 5 x 48 (weeks) x 4.

    Therefore, it is expected that Nationwide will give a new deal to London contractors with a rate as low as 1.59% fixed for 2 years with a £999 arrangement fee.

    For more details on this , or to apply, all you need to do is click on Contractor Mortgage Application and fill in the form there.

    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.