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

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House Prices to Rise by 30%

House Prices to Rise

House Prices to Rise

House prices to rise by 30% according to a new survey due to greater demand.

They are expected to rise by 30% over the next 5 years in the UK according to Rightmove, an online property portal.

House prices in London are expected to rise by 33% over the next 5 years despite signs of a recent cooling.

In the South East, house prices are predicted to rise by 37%. This will be caused by people moving out of the capital into commutable areas where the house prices are less onerous.

For instance, house prices in Southampton and Luton are expected to rise by 43% and 41%. They will rise in Brighton by 41% and Swindon by 40%.

The North West will see the slowest house price rises. However, they will still be up by 24%.

Good Time to Buy

This would be a good time to buy before house prices rise any more.

If you are looking to buy, contractors would be best to get quotes from specialist contractor mortgages brokers. Tony Harris  has been getting contractors mortgages for over 15 years.

For instance, if you walk into a high street bank or building society they will demand to see three years worth of accounts before they would even think of offering you and contractor mortgages.

Furthermore, they would also base their offer on your Director’s salary, which most contractors like to keep low.

Daily Rate Based Offers

Specialist contractor mortgages brokers can get you quotes based on your daily rate annualised. They would calculate your yearly income as Daily Rate x 5 x 48. Furthermore, they would then make you an offer of around 4 times that depending on circumstances.

With Help to Buy you can now get contractor mortgage offers of up to 95%.

It seems that Tony can get first time contractors contractor mortgages offers on the very first day of their very first day contracting. It seems that they can have the keys to their dream homes in just 4 to 6 weeks after starting their first contract.

To find out more about specialist contractor mortgages or to apply you should click on Specialist Contractor Mortgages

Contractor Mortgage Offers – Calculation of your offer

Contractor Mortgage Offers best rates

Contractor Mortgage Offers

Contractor Mortgage offers can vary greatly. Indeed if you went into a high street bank or building society they would base it on your Director’s salary. We all know that wouldn’t lead to great contractor mortgage offers.

They may not even give you an offer as they need three years worth of accounts as well.

If you go to a specialist contractor mortgages broker like Tony Harris, contractor mortgage offers are based on your daily rate annualised. That’s much better, isn’t it?

It’s basically Daily Rate x 5 times 48 times x 4. The last figure would be up to 5 depending on circumstances and how much deposit you put down.

However, a very rough figure would be got at for your contractor mortgage offers by multiplying your hourly rate by £7,200.

Example Offers Based On Rates

Hourly Rate – Offer

£20 – £144,000

£30 – £216,000

£40 – £288,000

£50 – £360,000

£60 – £432,000

Indicative Guide

It has to be said, again, that this is very rough and depends on your circumstances what your contractor mortgage offers are.

However, it is an indicative guide as to what you can get. Through specialist contractor mortgage brokers like Tony, you can get a mortgage offer within hours of the very first day of your very first contract.

There didn’t used to be specialist contractor mortgage brokers when I started contracting and I was ‘blown off’ by building societies and high street banks when I went looking for contractor mortgage offers. The three years of accounts needed were a killer.

Specialist Contractor Mortgages

However, Tony persuaded banks and building societies that there was a lucrative new market for them in loaning money to contractors. They dipped their toes in the water. When the contractors kept up to date with their mortgage payments and didn’t default, it gave Tony lots of credibility with the loaners.

Since then he’s been able to get more and more contractor mortgage offers for more and more contractors. It’s at good rates too.

To find out more or to apply you should click on Specialist Contractor Mortgages

Mortgage Market Review | Contractor Mortgages unaffected

Mortgage Market Review

Mortgage Market Review

If I decide to move house, will I risk missing out on a property due to the Mortgage Market Review (MMR) regulations?

Since the Mortgage Market Review was introduced on 26th April, typical high street Lenders have pushed back completion dates by weeks.

Many borrowers have failed to comply with the now much stricter affordability assessments. This has undoubtedly put some individuals off of even attempting to apply for a mortgage. However, this needn’t be the case.

Specialist Contractor Mortgages

Your Contractor status places you in a far stronger position. This is because you do not need to secure your mortgage through the local branch of your high street Lender. That is where the problems have been arising. Specialist Advisers such as Tony Harris use their contacts in the various Lenders underwriting departments, to ensure your application is processed quickly and smoothly.

They will expertly package your application to ensure that it is fully Mortgage Market Review compliant. Therefore it makes it easier for the Lender to process it. As such, Contractors are finding they are completing on purchases when others are failing.

Mortgage Market Review and Specialist Contractor Mortgages

Indeed the Mortgage Market Review is giving contractors the jump on other mortgage applicants. Contractor Financials are able to get specialist contract mortgages for contractors at better rates than the marketplace. That’s as well as getting them more easily.

If contractors walked into a high street bank or building society they would have to produce three years worth of accounts. Also, they would get a quote based on their director’s salary. As we all know, contractors like to keep that low so that they can take as much as possible in dividends.

If you want more information or to apply for a specialist contractor mortgage click on Specialist Contractor Mortgages

Contractor Mortgages Booming on Help to Buy

Contractor Mortgages Booming

Specialist Contractor Mortgages Booming

Specialist Contractor Mortgages Brokers are seeing their market for contractor mortgages booming. This is mainly because of the effects of the Government’s Help to Buy scheme.

The average UK house price was up by 0.6% in April. They are now up by 6% in the past year and the rate is accelerating.

In London they were up 0.8% in April.

Record low interest rates are one factor in the rise. The recovery from the downturn is another.

Help to Buy

However, the biggest factor is the Government’s Help to Buy scheme.

Previously, mortgage companies were asking people to put up 25% or 20% deposits. This was keeping the crucial first time buyers out of the property market.

Now the Government’s Help to Buy scheme is allowing people to get 95% contractor mortgages again by guaranteeing 15% of the loan. This is bringing in pent-up demand from first time buyers. They just couldn’t get into the market, previously, but now see contractor mortgages booming.

The Government’s Help to Buy scheme, which started last October for existing houses, is scheduled to last for 3 years. The Government are hoping that rising house prices will create a feelgood factor. They hope this will help them get re-elected next year.

By the end of those 3 years, contractor mortgages booming will mean house prices are likely to be much higher than they are now. The Government hope that a more settled recovery will see banks and building societies in a better position, with healthier balance sheets. This is so they can give out 95% mortgages without any Government intervention.

Contractor Mortgage Market

Specialist Contractor Mortgages broker Tony Harris is seeing a major boost on the Contractor Mortgage market. This is specially from first time contractors.

Tony is able to get contractors mortgages at better rates than the marketplace. This is mainly because of his track record. It’s also because of the track record of the contractors he has got mortgages previously, who have not defaulted on their loans.

High Street banks and Building Societies demand three years worth of accounts. They only give contractors a multiple of their Director’s Salary.

Contract Based

However, Tony can get contractor mortgages based on just the production of their contract. Also, he can get it based on a multiple of their daily rate annualised. This has got contractor mortgages booming.

Indeed he can get new contractors mortgage offers on the very first day of their very first contract.

To find out more or apply you should click on Specialist Contractor Mortgages

Specialist Contractor Mortgages loans soaring with Help to Buy

Contractor Mortgages Loans

Specialist Contractor Mortgages

UK Contractor Mortgage Boom

UK Contractor Mortgages are in great demand with specialist contractor mortgages loans brokers being run off their feet with demand due to Help To Buy.

Previously, lenders who were insisting on 20% and 25% deposits were keeping first time contractors out of the market.

However, the Government’s Help to Buy scheme has allowed contractors to get 95% specialist contractor mortgages loans.

Contractor Mortgages UK

According to the Nationwide Building Society, house prices rose by 0.6% in February alone. That is an annual increase of 9.4% since February last year.

A lot of this is down to the Government’s Help To Buy programme.

Specialist contractor mortgages loans brokers are able to get contractors mortgage quotes within a day or two of being approached.

Furthermore they don’t have to produce 3 years worth of accounts like they would if the contractor walked into a high street bank or building society.

Furthermore, still, they would base their quote on the contractor’s daily rate rather than their director’s salary as a high street bank or building society would.

Contractor Mortgages Loans

So, is the Government creating an artificial bubble in contractor mortgages loans? Certainly the Government want house prices higher to create a feelgood factor before the elections next year.

However, average house prices are still lower than they were in 2007 when the credit crunch hit so they are more affordable than they were then.

Contractor Mortgages Loans Rates have fallen by almost a full percentage point since October when the Government brought in Help To Buy as more and more lenders compete with each other to provide specialist mortgages for contractors.

Contractor Mortgages Boom

We are experiencing the fastest rate of house price growth for 4 years.

The average house price is now £3177,846. That’s still 5% behind what they were 7 years ago.

Lower interest rates and higher consumer confidence in the economy are likely to underpin this market.

Also, builders are building fewer houses. The number of houses built last year was 38% below 2007’s level. So more people are chasing fewer houses which forces prices higher.

House builders are reporting doubled profits with this new surge.

Contractors are piling in to these specialist contractor mortgages loans deals before house prices rise more.

To find out more or apply you should click on Specialist Contractor Mortgages

and Contractor Mortgages Advice

Contractor Mortgages – 95% mortgages trebled with Help To Buy

95% Mortgages

95% Mortgages for Contractors

The number of 95% mortgages available in the marketplace has trebled since the Government’s Help To Buy scheme was brought in during October. This has had a knock-on effect on UK Contractor Mortgages. Contractors are scrambling to get specialist contractor mortgages before the prices rise too high.

Not only that, the lenders are scrapping amongst themselves to use the Help To Buy scheme to sell those low deposit mortgages. This has resulted in the effective loan rates coming down a full percentage point since Help To Buy was introduced.

That’s saving the average buyer £1,200 a year in interest payments for houses averaging £150,000. When it comes to contractors that amount would be higher.

Contractor Mortgages in the UK

According To Genworth, buyers who want 95% mortgages via Help to Buy now have 132 different deals available to them. It seems that, since Help to Buy was introduced, lenders have cut the best rates from 5.48% to 4.69%.

That’s a fair bit of money for a contractor who is buying, say, a £300,000 house. Help To Buy allows first time contractors the opportunity to get a specialist contractor mortgage at a decent price.

Contractors still have a problem, when they go to a high street bank or building society. They ask for three years worth of accounts. They also base the quote on their Director’s salary, which they deliberately keep low. I found this problem all those years ago when I started contracting.

Specialist Contractor 95% Mortgages

Contractors today are luckier as there are now specialist contractor mortgages brokers, like Tony Harris. They have credibility with lenders in the marketplace. That’s due to the good behaviour of contractors for whom he previously got mortgages, in terms of making their payments and not defaulting.

Tony can get contractors 95% mortgages via Help To Buy on production just of their contract. Furthermore he gets them a quote based on their daily rate annualised. For instance a contractor on £400 a day could get an offer of up to £384,000.

To find out more, or to apply, you should click on Specialist Contractor Mortgages

Contractor Mortgages: Help to Buy sending house prices soaring

Specialist Contractor Mortgages

95% Specialist Contractor Mortgages are proving very popular with the advent of the Government’s Help To Buy scheme which started in October for existing houses and is due to run for the next few years.

It has really fired up a sagging housing market.

Rising House Prices

Rightmove, which is a property website have said that house prices have gone up by 1% in just the first two weeks of January. That’s an average of £2,406 per property. That’s the fastest they have ever gone up in that period says Rightmove.

House Prices have now gone up by 6.3% in the last year. That’s the highest rate of annual increase since the top of the market in November 2007.

In London it is just going crazy with house prices up by 15% in the past year. Indeed some experts are calling for Help To Buy to be cut short in London in case it overheats the market.

Mortgage Broker

Contractor Mortgages deals are flying off the shelf according to specialist Contractor Mortgages broker Tony Harris.

Normally contractors find it difficult to get mortgages, with high street banks demanding to see three years worth of accounts and making offers related to the contractor’s Director’s salary which is not usually that large.

Because of Tony’s reputation in the marketplace and the good payment record of the contractors that he has got mortgages, he is able to get contractors mortgage offers based on their daily rate and all they need is a copy of their contract.

First Timer Buyers

Indeed he can get first time contractors mortgage offers on their very first day of their very first contract. They can be in their dream house in another 4-6 weeks. One new contractor was even able to get the keys to his dream house within two weeks of his first ever contract.

To find out more, or to apply, click on Specialist Contractor Mortgages

New Help To Buy scheme – big take up

New Help to Buy Scheme

New Help to Buy Scheme

It seems that 2,000 people have already put in offers for houses in the first month of the new Help To Buy scheme set up by the Government. The average price of the properties bid for is £163,000.

It appears that the new Help To Buy scheme is mainly attracting first time buyers. Lenders froze them out of the market when they were asking for deposits of 20% or more.

Over 75% of the applications are from outside London and the South East.

Using the Help To Buy scheme you can get loans needing just a 5% deposit for homes up to a value of £600,000.

First Time Buyers

More than three-quarters of the applicants are first time buyers. The typical applicant is in his or her early thirties.

According to David Cameron “Four weeks in and it’s clear that Help to Buy is already delivering. Seventy-five families every single day have been put on the path to owning their dream home.

“But the best thing about it isn’t the statistics. It’s who is really benefiting. Most Help to Buy applicants are first-time buyers, young and have a roughly average household income.”

It seems that 65% of all mortgage providers have now signed up to the scheme. It will last for three years. After that, it is hoped that lenders will be in a position, with a recovering economy, of being able to give out 95% mortgages by themselves.

How to Apply

We would advise UK Contractors seeking to use the scheme to use a specialist contractor mortgage broker. Because, if you walk into a high street bank they will want three years worth of accounts. Furthermore, they will also base the offer amount on your director’s salary.

The specialist mortgage brokers will get you a mortgage offer based just on your contract and on your daily rate annualised, e.g. Daily Rate x 5 x 48. They can then get you offers of up to 4 times that annualised rate.

To find out more or to apply click on Specialist Contractor Mortgages

Specialist Contractor Mortgages broker predicts a boom year ahead

Specialist Contractor Mortgages Broker advice

Specialist Contractor Mortgages Broker

Specialist Contractor Mortgages broker, Tony Harris, sees a boom year ahead in 2014. Tony, who has been getting contractor mortgages for years at better than market rates, said “The market could be flying next year as there’s a heck of a lot more optimism”.

Tony is the first port of call for contractors whom the hight street bans have put off when they demand three years worth of accounts and only giving quotes of a multiple of their directors’ salaries, which are deliberately kept low to avoid tax.

Help To Buy

The big show in town now is Help To Buy. It is this that has set the market in motion with house prices already heading north. For years lenders weren’t lending except to people who could put up 20% or 25% of the money. That kept first time buyers out of the market and they are crucial to the housing market.

Now the Government is guaranteeing 20% of the money. That means that lenders can now offer 95% mortgages again So, that brings a lot more people into the market. The economic Laws of Supply and Demand say that if you increase the Demand and the Supply stays the same then the price of a commodity (in this case houses) will rise.

Help to Buy will be in place for three years so house prices are expected to soar. A recovering economy will also send house prices north.

Under Starters Orders

Phase 1 of the Government’s plan was to only offer the help with new houses. This was to help boost the construction industry as well as the housing market.

They were going to bring Help To Buy Phase 2 in on January 2014 for existing houses. However, they have brought it forward to October 2013. Buyers are now under starters orders and hoping to get in before house prices head further north.

With Tony’s credibility as a specialist contractor mortgages broker with lenders he can get contractor mortgages quotes from brokers almost immediately. All he needs is a copy of the contract rather than three years of accounts. He also gets contractors mortgages based on their daily rate annualised (daily rate x 5 x 48 x 4) rather than based on their directors’ salary. He can get first time contractors quotes on their very first day of their very first contract.

For more info, or to get a quote from a specialist contractor mortgages broker, fill in the form here Specialist Contractor Mortgages