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

No Stamp Duty for first time buyers – Contractor Mortgages

No Stamp Duty

No Stamp Duty

The Halifax has launched a mortgage with no stamp duty for first time buyers.

Stamp duty acts as a significant barrier for potential homeowners. So, Chancellor George Osborne is under pressure to do something in his budget to help cash strapped first time buyers and movers with this most hated tax. Contractor friendly Lender Halifax have taken matters in to their own hands. They have launched a headline grabbing offer for first time buyers.

If you are purchasing a property up to the value of £250,000, you won’t need to pay stamp duty on certain mortgage rate schemes. So, this could reduce your buying costs by as much as £2,500. If your chosen property is under £125,001 then Halifax will pay £250 cash back. This is despite the fact that your property wouldn’t be liable for stamp duty tax.

Halifax have run similar schemes in the past that have helped over 14,000 first time buyers onto the ladder. So the Lender is expecting to see similar figures this time. If other lenders jump on the bandwagon then Osborne may end up with little say in the matter. The market would rally to allow thousands more buyers to purchase without stamp duty costs.

The real cost of stamp duty

Each year, more and more first time buyers are being pushed in to the stamp duty bracket as house prices edge up.

According to LSL, the average purchase price for first time buyers in January was £155,832. This was 16.4% higher than the same time last year.

In line with this increase in house prices, the average deposit that a first time buyer must save has also risen. It is now £500 higher at £27,519. This represents 75.1% of a first time buyer’s income. This is according to figures released in January 2014. So saving extra funds to cover stamp duty adds a huge additional financial burden and could delay a potential purchase.

Figures from TSB suggest that 22% of first time buyers don’t take the cost of stamp duty into account when they make an offer on a property. This could leave these potential homeowners in the awkward position of finding up to an extra 3% of the property value before completion. This may be a struggle for cash strapped first time buyers.

Contractor Mortgages from Halifax

With just a 10% deposit, and a £999 arrangement fee, first time buyers can access a 2 year fixed rate mortgage at 4.79%. If you can provide a larger deposit of around 15%, you will be able to access a 2 year fixed rate at just 3.04% with a £1499 arrangement fee. These competitive Contractor Mortgage rates are available immediately to first time buyers. The arrangement fee can be added to your mortgage in both cases. So you won’t need to pay it upfront.

There is no stamp duty.

You can also access the stamp duty offer if you are applying for a 95% mortgage from the Halifax Help to buy product range. This is great news for those Contractors that have struggled to save a large deposit.

Looking for a larger property or your next move? If you are buying a property over the value of £250,000 or are an existing homeowner looking to move, you won’t qualify for the stamp duty incentive from Halifax. However, you can access a wide range of competitive Contractor Mortgage rates.This includes a special rate with the Lender. This entails a fixed rate mortgage for 2 years at 1.79% with a £1499 fee if you have a 40% deposit.

Halifax are not the only Contractor friendly Lender so it is worth consulting a Contractor specialist Independent Financial Adviser. They will search the whole of the market to find the best rates available to suit your individual circumstances.

Contractor Mortgages Broker

Tony Harris is a Specialist Contractor Mortgages Broker. He has a special relationship with the Halifax. Therefore, he is able to get contractors better rates than they would get on the marketplace. He is able to do this because of the credibility he has built up with them. This is mainly because the contractors that he sends to them have paid up on their mortgages and not defaulted.

Normally if you approach a building society, or high street bank, on your own, as a contractor you will be told that you need three years worth of accounts. Furthermore, you will only get a mortgage offer based on your Director’s salary.

Contractor Mortgage Offers With No Stamp Duty

This wouldn’t be worth having. However, because of Tony’s credibility with the Halifax he can get mortgage offers for contractors just on production of their contract. Indeed, first time contractors can get specialist contractor mortgage offers on their very first day of their very first contract. He can also get them quotes based on their daily rate annualised (daily rate x 4 x 48 weeks) rather than Director’s salary.

This Halifax one is with no stamp duty.

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

Race to beat Funding for Lending Cap

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

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

Help to Buy Explanation for Contractor Mortgages

Help to Buy explanation

Help to Buy Explanation

We give a Help to Buy explanation.

Help to Buy is the new scheme set up by the Government to give the housing market a kickstart. They hope that it will kickstart both the construction industry and also the UK economy. They are taking a risk that it just creates a housing bubble similar to the situation where we got into this mess in the first place.

However, contractors can take advantage of this. It is probably the best time to get a contractor mortgage. There is likely to be a ready supply of new buyers. The laws of Supply and Demand say that if you increase the Demand when the Supply remains the same then there is bound to be a rise in price of the product supplied, in this case UK houses.

Help To Buy

So, how does Help to Buy work?

It was brought in for new houses and flats only in the Budget this year. They were going to bring it in for older houses in January. However, they have now brought that forward to October. So it is ready to go now.

Lenders, previously, were insisting on deposits of 20% or more. So the Government are going to loan housebuyers 20% of the mortgage in a 5-year interest free loan. They guarantee the lenders 15% of the mortgage.

This means that lenders can offer 95% mortgages again. This obviously brings a host of new potential buyers into the market. Indeed it brings in far more first-time-buyers.

Among these are contractors. Tony Harris has been getting specialist contractor mortgages for years, now, at below market rates. He can now get first time contractors mortgage offers on their very first day of their very first contract. What’s more he can get them mortgage offers based on their daily rate annualised, i.e. Daily Rate x 5 x 48 x 4.

How to Apply

For a Help to Buy explanation or to apply for one of these specialist contractor mortgages click on Specialist Contractor Mortgages

Contractor Mortgages scramble as house prices soar

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.