Tag Archives: Contractor Property Market

Contractor Property Market
The contractor property market is booming as never before.

Long gone are the days when all sorts of barriers were put in front of contractors preventing them getting a decent mortgage offer or even a mortgage at all.

Ten years ago, new IT Contractors, and other contractors, were locked out of the proeprty market totally.

[caption id="attachment_630" align="alignnone" width="259"] Contractor Property Market Opportunities[/caption]

Rejected by Builing Society

I found this when I first went for a mortgage. I thought the building society would be all over me with my new-found wealth as an IT Contractor, hoping to loan to me.

I thought that they would be impressed when I told them how much I made.

However, it was just the opposite. they saw me as a major risk.
Contractor Accounts Needed
They wanted to see three years worth of accounts, which I couldn’t produce.

That was a complete deal breaker.

I had a house in mind and thought that I could easily afford it.

However, even if I had been able to produce accounts, there was another blow.

[caption id="attachment_608" align="alignnone" width="225"] Director’s Salary used as base for Contractor Mortgage Offer[/caption]
Mortgage Offer based on Director’s Salary
The mortgage offer would be based on my Director’s Salary.

Like most IT Contractors, I had deliberately kept that low so that I could pay myself in divdends.

With any mortgage offer that I did get, I could not afford the house anyway – at least according to the building society. I thought I could easily afford it on my contractor income.
Specialist Contractor Mortgage Brokers
Nowadays, this is not a problem for IT Contractors.

Specialist contractor mortagge brokers can get them mortgage offers:-

On production of their contract as proof
Based on their daily rate annualised.

[caption id="attachment_609" align="alignnone" width="205"] Doctors Seeking Contractor Mortgage sat best rates[/caption]
Contractor Mortgages for All Contractors
In the past couple of years the contractor mortagge market has expanded into getting great mortgage offers for engineers, construction workers, teachers, nurses, doctors, Accountants etc.

Those specialist mortageg brokers can get contractors mortgage interest rates better than those on the marketplace.

Thses are very changed days – provided you use a specialist contractor mortgages broker.

Contractor Mortgages Market Boom – Best Places for Contractors to Buy

Posted on by
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.

Making money when you are out of work

Posted on by
Making Money when out of work

Making Money

We advise you on making money when you are out of work.

Booming Houses

The property market is booming in the South of England, and further north as well. This will not last forever. At some point, i.e. when the recovery starts and interest rates rise, property prices, especially in the south, are going to turn downwards.

What can the people who are out of work do about this in terms of benefitting and making money? Well, if they are out of work, there is no reason that they need to continue living where they are currently.

If you are out of work, it might be an idea to sell your house in the South of England. Buy one in Scotland (outside Edinburgh or Glasgow) where the prices haven’t gone up by much so far. It’s a good way of making money.

Buy Value Property

If you had a property worth, say, 400 grand, you might save yourself a drop to 350 grand. You could buy one in Scotland for 400 grand. If you bought in Scotland, you might find, in the next year, that it had increased to 500K. This would mean that you are net 100K richer (less costs).

You would get a fantastic house in Scotland for 400K. Also, your wealth would increase by more than you would earn contracting (without the tax), whilst doing nothing (except a spot of salmon fishing).

Making Money from your House

You would make £100,000 on the house and saved yourself a loss of £50,000 on your previous property. Isn’t that a good way of making money? That’s as while having a holiday in Scotland for a year

When the market picks up next year, sell your house in Scotland and come back south. You would pick up a better house / flat than you had before.

Wouldn’t it be nice to breeze back down to the South of England and back to work after a nice year off, whilst your house in Scotland appreciated, and your house / flat back in the South depreciated?

To assist in this here is how to get in touch with a Specialist Contractor Mortgages  Broker

Contractor Mortgages Booming on Help to Buy

Posted on by
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

Race to beat Funding for Lending Cap

Posted on by
Funding for Lending

Funding for Lending Cap

The race is on to beat the Government’s Funding for Lending Cap on Specialist Contractor Mortgages. The Government had loaned the big lenders funds so that they could loan money to businesses to help the country out of the downward spiral.

Banks hadn’t been lending, which was hitting the economy, so the Government stepped in to guarantee loans to small businesses.

However, instead of using that money to loan to small businesses, the bulk of the money was used by the banks to fund mortgages.

Help to Buy

The Government exacerbated this by the launch of the Help to Buy. The Government would guarantee 15% of a 95% loan to those buying new houses. This was to help boost both the construction industry and the housing market. It also brought first time buyers into the market for the first time in years.

They have extended it to all buyers now. It was supposed to come in during January but they brought it forward 3 months to October. Tony Harris, a mortgage broker for many years in the contractor market, saw a steady flow of contractors taking up specialist contractor mortgages deals.

House prices have started to rise boosted by more buyers entering the market.

End of Funding for Lending

Now, shortly, the Government will pull one of the planks away. In February, the Government will bring in a Funding for Lending Cap for lenders giving mortgages. They will still be able to tap Funding for Lending to loan to small businesses but not to those wanting to buy houses.

There will still be the other pillar of Help to Buy but there will be less monetary help from the Government in terms of Funding for Lending. There is still, of course, a window of opportunity between now and the start of February. It is predicted that loan rates may rise after that. That’s because there will be less money to loan to the same amount of mortgage seekers.

Closing Window

Contractor Mortgages are still available at the old rates. Lenders can still tap that money for now – but the window is closing.

For more information on getting Specialist Contractor Mortgages you should click here

To get a quote for Specialist Contractor Mortgages you should click Specialist Contractor Mortgages

Specialist Contractor Mortgages broker predicts a boom year ahead

Posted on by
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

Help to Buy fuels Contractor Mortgage boom

Posted on by
Help to Buy fuels

Help to Buy Fuels

Help to Buy fuels contractor mortgage boom.

Help to Buy, the Government’s new tool to boost the housing market, is helping the Contractor Mortgage market. Tony Harris, an expert in getting contractors mortgages, is seeing the contractor mortgage market go through the roof.

Currently it is only available for new houses. However, from the end of the year contractors will be able to get mortgages for all types of property. With Help to Buy contractors can get 95% mortgages. Previously mortgage vendors have been asking for 20% deposits.

Basically the Government is underwriting the 95% mortgages encouraging people to start buying and selling houses. Their motives are to boost the feelgood factor ahead of the next election in less than 2 years time.

In July house prices rose by 3.3% year-on-year. In June it was 3.3% so it looks s if the market is getting up a head of steam. This looks to be a good time to get in as Help to Buy fuels this market and will help get the market motoring.

Property Prices

There’s still a chance to get into the market outside London and the South East where property prices have only risen by 0.8% in the last year. Any property price rises usually start in London and the South East and gradually spread north from there.

Tony is able to get contractors mortgages at less than the market rate. This is down to his credibility in the marketplace and because previous contractor clients of his have paid back their loans and have not defaulted.

From being seen as risky the track record of contractors in paying their mortgages has meant that new entrants to the mortgage market are getting mortgages at better than market rates.

He gets them mortgages at up to 4 times their daily rate annualised rather than as a multiple of Director’s Pay as high street banks do.

They also don’t need 3 years worth of accounts as they would at a high street ban. All they need is their contract. According to pundits this is a premium time to buy. The Stock Market has already soared but the property market is just starting to get into gear now. Prices will be higher in 3 years time.

Help to Buy fuels this market.

For more info click on Specialist Contractor Mortgages

Contractor Mortgages scramble as house prices soar

Posted on by
Contractor Mortgages Scramble

Contractor Mortgages Scramble

There is currently a contractor mortgages scramble.

The Government’s Help To Buy scheme has boosted contractor mortgages. This is where contractors can get 95% mortgages aided by Government funds. At the moment it only applies to new houses but next year it will apply to older houses too.

The Government say that they brought in Help to Buy to help get the housing market going. This would help boost the economy. Furthermore, it would also artificially create a feelgood factor in time for the elections.

As a result,there has been a contractor mortgages scramble. House prices have turned the corner and have now risen by 5.4% in the past year. Further rises are predicted during the 3-year period of the Help to Buy scheme. A rising economy should keep house prices rising after that.

Tony Harris has been getting specialist contractor mortgages for IT Contractor for many years. He has now expanded that to all contractors. His credibility in the marketplace with lenders has enabled him to get contractors better-than-market-rates for mortgages.

Contractor Mortgage Rates

Also, his credibility comes from IT Contractors paying back their mortgages over the years and not defaulting. High Street banks see contractors as a risk. So, they ask for three years worth of accounts. Furthermore, they only offer a loan of a multiple of Director’s salary rather than the multiple of daily rate annualised that Tony can offer.

They don’t need three years worth of accounts either. He can get them a mortgage offer on the very first day of their very first contract. All they need to do is produce their contract. About a month later they can be turning the keys of their new dream home.

There’s a contractor mortgages scramble now with prices on the up. The Government are trying to force prices up before the next election. If contractors wait a couple of years they may find house prices 10% to 15% higher. This appears to be the time to get one of those specialist contractor mortgages. This is because house prices are expected to rise more than contractor rates over the next 3 years.

Contractor Mortgage Guarantee – new Help to Buy rules

Posted on by
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

Posted on by
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

Contractor Mortgage demand rockets as house prices soar

Posted on by
Contractor Mortgage demand

Contractor Mortgage Demand

Contractor Mortgage demand is rocketing. The average price of houses soared because of different Government initiatives designed to send house prices rocketing before the next election. They are trying to create a feelgood factor.

A survey by Rics shows their members expecting house prices to continue to rise for at least 5 years.

Just last week, the Halifax said that house prices are rising at their fastest rate for 3 years. House prices for the 3 months to the end of June were up 3.7% compared to this time last year.

Help to Buy

This is expected to be just the beginning, as the Government’s Help To Buy scheme starts to kick in. The Government are underwriting part of mortgages now. This is in order to let people get 95% mortgages when lenders were insisting on a deposit of at least 20% before.

This is opening up the market to first time buyers who were locked out before. It is increasing the demand so, when that happens, prices soar according to the economic Laws of Supply and Demand. Contractor Mortgage Demand will keep increasing.

According to Peter Bolton King of Rics “After what has seemed like a very long wait we are finally starting to see what looks like the beginning of a recovery in the housing market”.

“It is important to remember that activity levels still remain depressed by historic standards. However, the various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends.”

Contractor Mortgage Deals

Specialist Contractor Mortgage broker Tony Harris, who has been getting contractors mortgages for years, said that he had never been busier. Contractor Mortgage Demand is going through the roof.

Tony is able to get specialist contractor mortgage deals at rates below the market average. This is because of his credibility with lenders. It’s also because contractors that he previously got mortgages for have not defaulted.

He is able to get them mortgages without having to produce any accounts. All they need is a copy of their contract. He can get them mortgages at up to 4 times their daily rate annualised. This means that contractors on £500 a day can get an offer of close to half a million pounds.

For more information or to get a quote click on Specialist Contractor Mortgages