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

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

How Long Do you Have to be a Contractor

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

Contractor Mortgage Offer – how much can you get?

How Much Can You Get

So, How Much Can You Get

The questions contractors ask is how much can they get when applying for a specialist contractor mortgage.

Tony Harris is a specialist contractor mortgages broker. He has successfully got contractors mortgage offers for years, way above what a high street bank would get you. We ask him how much a contractor can get on his contractor mortgage offer and how it is worked out.

Tony, how much of a contractor mortgage offer can you get a contractor? Is it related to the amount you pay yourself from your company? Can you get a contractor mortgage offer based on the total amount of the contract? Say I was earning £400 a day but paying myself £150 a day? How much of a contractor mortgage offer could you get me?

Tony’s reply on Contractor Mortgage Offer

“Our specially negotiated contract based underwriting uses your hourly or daily rate to work out how much you can borrow This is irrespective of how much you physically draw out for yourself.

“We simply take your daily rate of £400 and work out what your annualised rate would be if you worked at this level for five days a week and 48 weeks of the year.

“The lender will then specify what multiple of this they are willing to lend. However, it is usually around four times annual contract rate.

Contractor Mortgage Offer from Contract

“This means you could secure a mortgage of £384,000 despite only paying yourself £150 a day.

“You don’t have to have an annual contract to receive this amount. The lenders we use understand our niche clients. They appreciate that you are highly likely to secure another contract as soon as the current one has ended. So even if you only have a three-month contract, we should be able to secure you a mortgage”.

Director’s Salary

That’s pretty good and a lot more than a bank or building society would offer you. They would only take the Director’s salary you draw. They offer contractor mortgages based on 3, 4 or 5 times that. That wouldn’t buy you much.

It’s basically all down to Tony’s credibility with the mortgage brokers and his success down the years in bringing them contractors who pay their mortgages. Contractors can tap into that.

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

Contractor Mortgages for Umbrella Company Contractors

Umbrella Company Contractors getting Mortgages

Umbrella Company Contractors

Can specialist brokers get mortgages for umbrella company contractors?

Specialist contractor mortgages broker Tony Harris has been getting contractors mortgages for years without them having to produce three years worth of accounts as a high street bank would ask for. He can also get the offer based on their daily rate rather than a multiple of their Director’s salary.

He started with getting mortgages for IT Contractor more than ten years ago. Previously contractors found it difficult to get mortgages because they didn’t have regular monthly income like a permanent employee.

Mortgage Lender

However, Tony talked a lender into taking a chance and give contractors mortgages. The contractor paid up their mortgages monthly and didn’t default.

This gave Tony greater credibility with the lenders. So, he was able to get more and more mortgages for contractors. This has benefitted many, many contractors in the last 10 years.

However, can he also get specialist contractor mortgages for Umbrella Company contractors? We put it to him.

We asked “Tony, do you cater for Umbrella Company contractors as well as Limited Company contractors? What info do they have to supply and is easier or harder to get them mortgages?”

Contractors Mortgages

He replied “We use a multiple of contracts irrespective of whether you are a ltd company owner or if you contract through an umbrella company.

“The only difference is that additional evidence is needed to support your application by way of your payslips. It is no harder to secure a mortgage for umbrella company contractors, as long as you have a signed copy of your current contract”.

So it looks as if those specialist contractor mortgages are available to Umbrella Company contractors just as easily as they are to Limited Company contractors.

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

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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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.

Contractor Mortgages | Which Contractor Mortgage?

Which Contractor Mortgage

Which Contractor Mortgage?

People often ask us which contractor mortgage should a contractor choose?

What most contractors do is to walk into a high street bank or building society and ask for a mortgage. This is a huge mistake. They will tell you two things:-

1.  You need to produce three years worth of accounts

2.  The contractor mortgage offer will be based on a multiple of your Directory’s salary.

No matter which contractor mortgage you get it would be worse than if you would have got as a permanent employee.

Shock to Contractors

This will come as a shock to contractors – especially those that have been contracting for less than 3 years. Indeed, when I was told the above, a good few years ago, I just gave up for many years looking to own my own house.

I would have been better staying as a permie as I would have got a better mortgage offer. I wished that I had bought a house or flat PRIOR to becoming an IT contractor.

Of course, this was before the days of specialist contractor mortgages. Tony Harris started that market just over ten years ago.

He went to lenders and asked them to fund specialist mortgages for IT Contractors. This took lenders aback and shocked at his temerity in asking for long-term mortgages for people, i.e. IT Contractors, who had insecure jobs. This could be a disaster for them, they thought.

Which Contractor Mortgage for Tony

However, this could potentially be a very lucrative market for them as there were a growing number, now measured in the hundreds of thousands, of IT Contractors in the UK.

So, Tony managed to get one lender to dip their toe (the very edge of their big toe) in the water to test specialist contractor mortgages to see if it would work.

And work it did!

UK Contractor Mortgages articles

UK Contractor Mortgages articles

They found that IT contractors paid their monthly mortgage instalments at least as well as anyone else and didn’t default on their mortgages during hard times.

So, they started lending more IT Contractors money for specialist contractor mortgages. Then Tony started to get other lenders to loan money to IT Contractors after this initial success.

It meant that he was able to get better and better rates for IT contractors as the lenders fought each other to get into this new lucrative market. Remember this when you are considering which contractor mortgage you should get.

Mortgages for All Contractor Now

Within the last couple of years Tony was able to get these lenders to extend loans to all contractors and not just IT Contractors.

The deal he has got with them is much better than the deal that contractors would get if they walked into a high street bank or building society.

The main points of the deal are:-

1.  Contractors would not need three years worth of accounts. All the proof they would need to offer contractors a mortgage would be the contractor’s contract.

2.  The offer would be based on the contractor’s daily rate annualised. That is Daily Rate x 5 x 48 x 4.

Contractor Mortgage Offers

They can now get contractors mortgage offers on the same day that the contractor contacts them.

Indeed they can get first time contractors a mortgage offer on the very first day of their very first contract. It means that they can get the keys to their dream house approximately four weeks after their first day on a contract.

Indeed, in one case they got one first time contractor into his dream house just two weeks after starting his first ever contract.

Tony has so much credibility with lenders now that he can often get contractors mortgages at better than market rates.

Help to Buy Mortgages

With the advent of Help to Buy mortgages, he can get contractors 95% mortgages.

So, which contractor mortgage should you look for – one from a high street bank or building society – or one from a specialist contractor mortgage broker like Tony?

I think that one’s a no brainer!

To find our more about these specialist contractor mortgages click on Contractor Mortgage Application and fill in the form there.

Contractor Mortgages Market Boom – Best Places for Contractors to Buy

Contractor Mortgages Market Boom

Contractor Mortgages Market Boom

There is a Contractor Mortgages Market boom, according to specialist contractor mortgages broker Tony Harris.

London has seen massive rises in the price of houses and apartments. With London becoming, more and more, an international city, the contractor mortgages market is set to continue in its upward path.

The best value in the next few years, though, could be in cities and areas who have more recently started rising in price.

Property Mortgages Market Boom Moving North

Every property market boom starts, firstly, in the south and gradually spreads throughout the country. It moves north generally.

The current contractor mortgages market boom is going that way.

This means that cities like Sheffield, Liverpool and Glasgow are likely to rise more than southern cities in he next few years. The contractor mortgages market is likely to increase significantly in those cities.

Property experts say that London house prices will continue to rise – but at a slower rate than northern cities.

Buy a House up North

Indeed, if a contractor from London got an extended contract in a northern city, like Liverpool or Glasgow, it might be a good idea to sell up in London and buy a house in Liverpool or Glasgow.

Firstly, it would be an absolutely palatial place you could get there just by selling a flat in a decent area of London.

Secondly, when it was time to go back down south again the contractor would get an even better property in London after selling his, or her, northern house for more than his previous place in London was now worth.

Your house could make more for you than your contract.

Average Annual Earnings

House prices in London are now 12 times Londoners average annual earnings. For the UK as a whole it is 6.3 times annual earnings.

Average house prices in both London and Oxford were now so high that they were more than 12 times local annual earnings – almost double the UK average of 6.3 times wages.

The cities where house prices have been rising for 6 years are as follows. They are Aberdeen, Bristol, Cardiff, London, Cambridge, Birmingham, Oxford and Manchester.

Contractor Mortgages Market Best Areas to Buy

Although property prices will continue to rise in those cities, it will be at a slower rate than the following cities which have only started to recover in the past two years.

They are Glasgow, Edinburgh, Liverpool, Newcastle, Sheffield and Leeds. Belfast has only started recovering in the past 18 months and houses there are at real bargain prices.

House Prices in those cities are only between 3 and 6 times local annual salaries. This makes them most affordable. There’s more room for property price rises in those cities.

London Property Boom

In the last 6 years the average property price in London has risen from £144,278 to £405,500. That’s astonishing. Part of that is due to London’s status as an international city.

The Government’s Help to Buy scheme has given a massive boost to the contractor mortgages market. It means that first time buyers could enter the housing market again.

They can get 95% mortgages now compared to 75% to 80% mortgages before.

Contractor Mortgages Maximum Offers

Low rates are also sending the market higher. These are the lowest rates that contractors have ever had – and many of the are taking fixed rate mortgages to lock in those low rates.

A contractor mortgages lenders war has intensified this year leading to some great bargains for contractors as regards mortgage rates.

Banks and building societies ask contractors for three years worth of accounts. Contractor mortgage brokers need just a copy of the contract.

High street banks and building societies base their offers on the contractor’s director’s salary. Contractor mortgage brokers base it on a contractors daily rate annualised – which is much more.

This has led to the current contractor mortgages market boom.

To find our more click on Specialist Contractor Mortgages

Contractor Crowdfunding Club

To learn more, or to join, our Contractor Crowdfunding Club click on Contractor Crowdfunding Opportunities

You’ll hear first about great crowdfunding opportunities and get in ahead of the crowd. Often these opportunities disappear in hours.

First Time Buyers Property Boom on back of Help to Buy

Property Crowdfunding for Contractors

First Time Buyers Property Boom

A first time buyers property boom has sent the property market soaring. Prior to the Help to Buy scheme being brought in by the Government, contractors were having to stump up 20% to 25% deposits if they wanted to buy a house or apartment. As you can imagine, most first time buyers could not afford that.

Therefore, these high deposits pretty much excluded first time buyers from the market and they are normally the lifeblood of the property market.

Laws of Supply and Demand

If you cut the demand for a commodity then, if the supply stays the same, the price decreases. Equally, according to the economic Laws of Supply and Demand, if you increase the demand for a commodity, and the supply remains the same, then the price goes up.

That is why house prices were previously falling and now they are rising.

With the addition of first time buyers to the market the demand has increased and so the prices have been rising. This has been because of a first time buyers property boom.

House Prices Rising

Recent figures from the Office for National Statistics (ONS) have shown that house prices rose by 9.% in 2014.

Mortgage lenders have reported that this first time buyers property boom has led to a record level of mortgages sold to first time buyers.

The average house price is now £272,000 – up £22,000 in just a year.

Specialist Contractor Mortgages Market

There’s also a first time buyers property boom in the specialist contractor mortgages market, according to specialist contractor mortgages broker Tony Harris.

He has been getting contractors mortgages for years. You are always better to use a specialist contractor mortgages broker. They can get contractors the best deals.

He can get contractors mortgages based on their daily rate annualised times 4. All they have to do is produce a copy of their contract.

If contractors went to a high street bank or building society they would ask them for 3 years worth of accounts. Any offer would be based on their Director’s Salary too.

To find our more click on Specialist Contractor Mortgages

Contractor Crowdfunding Club

To learn more or to join our Contractor Crowdfunding Club click on Contractor Crowdfunding Opportunities

You’ll hear first about great crowdfunding opportunities and get in ahead of the crowd. Often these opportunities disappear in hours.

 

Help to Buy Property Boom sends Housing Market Soaring

Help to Buy Property Boom

Help to Buy Property Boom

House Prices soared by £6,000 just last month in England and Wales boosted by a Help to Buy Property Boom.

That’s up 2.4% in just a month.

There was a fall of 4% in the number of new sellers.

Everyone knows that, according to the Economic Laws of Supply and Demand, if the Demand remains the same and the Supply (of housing) decreases then the price of that commodity (houses) will rise.

So, that’s what has been happening.

Buy To Let Property Owners

It seems that Buy to Let property owners are hanging onto their properties. It also seems that Buy to Let investors are long-term investors and are less likely to sell than other property owners.

With more Buy to Let property owners about, that is decreasing the supply of properties for sale even further and pushing up the price.

With mortgage rates at record lows and the Government helping new property owners to get 95% mortgages, there is a Help to Buy property boom on full flow.

Many people’s houses are earning more than the people who live in them.

Lenders Competing for Customers

Estate Agents are saying that they are seeing the lowest ever level of quality properties on the market. No one is selling except those who have to, as they watch their house prices rise and rise.

Lenders are now having to compete aggressively for customers and UK Contractors are taking advantage and sealing in these great rates. There’s a mortgage war happening at the moment and a Help to Buy Property boom.

Specialist contractor mortgage brokers are getting contractors fantastic rates, at the moment, based on just the production of their contract. They are also getting them 95% Help to Buy mortgage offers based on their daily rate annualised.

For more information see Specialist Contractor Mortgages