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
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