Tag Archives: Mortgage Guarantee

Contractor Mortgage Guarantee – new Help to Buy rules

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Contractor Mortgage Guarantee

Contractor Mortgage Guarantee

There’s news of a Contractor Mortgage Guarantee.

Specialist Contractor Mortgages received a major boost with the new rules on Help To By spelled out by Chancellor Osborne today.

Previously lenders had been giving no more than 80% mortgages which reduced the demand. However, the Government stepped in with Help To Buy. The Government would underwrite 20% of the mortgage at zero interest. This meant that contractors could get mortgages at up to 95% of the total in a Contractor Mortgage Guarantee.

However, it was only for new houses. That is all to change, according to the statement today. A new scheme worth £12bn will launch in January 2014 which means that contractors will be able to join the Help To Buy scheme when purchasing any property valued at less than £600,000.

Help to Buy Scheme

Existing homeowners can use the Help to Buy scheme if they want to re-mortgage their home.

It won’t be available for Let-To-Buy folk or for second homes. However, one would expect that. The borrowers will have to pass lending tests – you would expect that too.

The Government already see the Help to Buy scheme as a success. Pundits are warning tat it could create a boom in the housing market. The IMF have warned that it will inflate house prices.

This is pretty much what the Government want, though, as they try to create a feelgood factor, ahead of the next election, with nicely rising house prices.

Contractor Mortgage Guarantee Agreement

Said Chancellor Osborne “The contractor mortgage guarantee will support an increase in high loan-to-value mortgages for people who can’t afford large deposits, and it will also boost housebuilding. As of today, lenders have the detail they need to go away and get ready for next January’s launch.”

There have been 7,000 uptakes of the loans in the first 4 months of Help To Buy.
There are already signs of an uptick in the housing market with prices up 4% this year when they were predicted to be flat.

Contractor Mortgages are now booming according to specialist Contractors Mortgages broker Tony Harris who said that the market is ahead of its previous peak of 2007.

To find out more or to get a quote click on Specialist Contractor Mortgages

New First time buyers boosting Contractor Mortgages Market

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New First Time Buyers

New First Time Buyers

The return of new first time buyers has given the contractor mortgage market a massive boost. Because the big banks and building societies were insisting on 20% deposits and more new first time buyers were getting squeezed out of the market.

However, with the Government’s new Help to Buy scheme first time buyers are flocking back to the market in droves.

There were 25,100 new first time buyers in May. That’s a massive 29% up on April. It’s an even higher 42% higher than in May last year. The Help to Buy scheme is having a massive effect on the housing market.

Contractor Mortgage Guarantee

The Government are guaranteeing parts of the mortgage to enable people to get 95% mortgages again. It is this that is bringing the new first time buyers back in such massive numbers. It is also causing house prices to head north again.

First time buyers now account for 45% of house purchases. The average since 2007 has been 38%.

Said Paul Smee of the Council of Mortgage Lenders “Although monthly lending is still running at far less than half its typical level during the peak, there is no doubt that the mortgage market is firmly open for business. The borrowing appetite of first time buyers and the availability of attractive mortgages for them, have improved markedly since a year ago.”

Specialist Contractor Mortgage Broker

Contractors looking for a mortgage should avoid the high street banks and building societies. They should contact a specialist contractor mortgage broker instead.

The reason is that those big institutions don’t understand freelancing and ask for 3 years worth of accounts. They also make their offer based on the Director’s salary in their accounts. As we all know contractors prefer to get paid their money in dividends.

Specialist Contractor Mortgage broker, Tony Harris, has been getting contractors mortgages for years using just their contract and basing the offer on the contractor’s daily rate annualised. So a contractor earning £400 a day could get a mortgage offer of up to half a million pounds.

He uses his reputation in the marketplace to get contractors mortgage offers at less than the market rates. To find out more or to get a quote click on Specialist Contractor Mortgages