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.
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