Category Archives: Help to Buy Mortgages

Help to Buy Mortgages
The Government’s new Help to Buy Mortgages cheme is boosting the contractor mortgages market.

Contractor Mortgages Brokers can now offer Help To Buy mortgages. This is the scheme that the Government set up to kick start the housing market and the economy.

Previously, mortgage lenders were insisting on deposits of 20% or 25%.

This was related to the previous banking crisis. Banks no longer wanted to take risks when loaning to people.
Contractor Mortgage Offers
The Government stepped in and guaranteed 20% of the loan.

This meant that contractors seeking mortgages only had to put up 5% deposits instead of 25% deposits.

That got the housing market kick started in time for an election feelgood boost.

[caption id="attachment_590" align="alignnone" width="256"] Help to Buy Mortgages for UK Contractors[/caption]

Specialist broker – Why Contractors should use them

Posted on June 19, 2016 by admin

Specialist Broker

Tony Harris is a specialist broker of contractor mortgages. He has been getting contractors mortgages for many years. So, I thought I would ask him why contractors should use a specialist broker like him rather than go direct to those that give out mortgages.

I asked him “Why should I go via you when I can just walk into a high street bank or building society? What differentiates you?”

Contract Based

With over fourteen years experience as a specialist broker and of negotiating our contract based mortgage underwriting, we have built unrivalled relationships with lenders.

If you go in to a high street bank and present your accounts, the mortgage adviser will only see your net income. This should be considerably less than you are actually earning (if your accountant is doing his job). So, this could severely limit the amount you can borrow.

Annual Contract Rate

Instead we use our contacts to secure your mortgage based on a multiple of your annual contract rate. This is irrespective of how long you have been contracting. It also doesn’t matter how long you have left on your current assignment.

This invariably allows our clients to borrow far more than they could even when they were a permie. It also saves the trouble of collating years of accounts or projections. This is the standard requirement if you were to go in-branch.

Mortgage Lenders

We understand that you live a very hectic lifestyle and have tailored our service to match.

We won’t need to see you face-to-face for a lengthy meeting as our entire service is offered online, via email and by phone. We do all the running for you, liaising with solicitors, lenders and estate agents so you don’t have to.

You will have one contact who will guide you through the process and is on hand to answer any questions you may have, leaving you free to concentrate on the needs of your client.

Best Mortgage Rates

That answers that then. It would be a foolish contractor who walked into banks asking about their contractor mortgages.

Tony uses his credibility in the marketplace to help get contractors the best mortgage rates available and the highest offers.

To get further information or to apply to a specialist broker for a mortgage, fill in a form here and Tony will get back to you:- Mortgages for Contractors

5% Contractor Mortgages Deposits Using Help to Buy

Posted on December 20, 2015 by admin

5% Contractor Mortgages Deposits

5% Contractor Mortgages Deposits are now available to contractors using the Government’s Help to Buy mortgage scheme.

Previously, first time buyers, including first time contractors, were priced out of the market as lenders wanted 25% deposits.

They were spooked by the great banking crisis of 2007/8 and were unwilling to lend except to just the very safest borrowers.

As first time buyers are the ones who keep the cogs of the housing market wheels running, it meant that house prices were stagnating.

New Contractors Looking for low-interest Mortgages

Help to Buy Mortgages for Contractors

The Government’s Help to Buy scheme kick-started the property market.

They guaranteed 20% of the loan when someone wanted to buy a house. That meant that the buyers, including contractors, only had to come up with 5% of the money.

Therefore, that meant that a house had to fall by 25% in value before the high street bank or building society took a hit.

It wasn’t the Government who loaned the money to the borrower. It was the lender that did that.

All the Government did was to guarantee 20% of the loan.

First Time Buyers / First Time Contractors Took Advantage

Of course, the Government knew that if first time buyers, like first time contractors, came onto the market again it would send house prices higher . So it would never cost them a penny.

This was indeed what happened.

Therefore, borrowers were happy as it meant that, as they just had to stump up the 5% contractor mortgages deposit. They could afford this.

Lenders were happy also. A house would have to fall in value by more than 25% before they took a hit.

The Government were happy as there was now a feelgood factor in a rising housing market. This helped get them re-elected in 2015.

5% Contractor Mortgage Deposits via Help to Buy scheme

5% Contractor Mortgage Deposits from Help to Buy scheme

Rising Housing Market for Contractor Mortgages

The great thing about it for them was that it didn’t cost them anything. It was a very clever scheme.

The rising housing market took the risk of losses away from them. It meant that those houses and flats, where they guaranteed the 20%, rose in value well away from the threshold where they would lose out if someone defaulted on their mortgage.

That’s the beauty of the Help to Buy scheme. No one loses.

Specialist Contractor Mortgage Brokers

Contractors who want to take advantage of the Government’s Help to Buy scheme and the 5% contractor mortgages deposit should use a specialist contractor mortgages broker.

If they don’t, they risk being asked to provide three years worth of accounts. They would, also, get their offers based on their Director’s salary if they are a personal service company contractors.

By using a specialist contractor mortgages broker, all you have to provide is a copy of your contract as proof as earnings.

You will also get a contractor mortgage offer based on your daily rate annualised. They assume you work 48 weeks of the year and the mortgage lender will loan you 4 times your annual salary. They might even give you 5 times it.

Help to Buy Mortgages for UK Contractors

Contractor Mortgage Deposits

Obviously, the more deposit that you can put up the better the interest rates you can get.

However, those specialist contractor mortgage brokers can often get contractors mortgage interest rates at less than the market rate.

To find out more about 5% contractor mortgages deposits using Help to Buy, or to apply, please click on Contractor Mortgage Application and fill in the form there.

40% Deposit Interest Free Present to Londoners from Government

Posted on November 27, 2015 by admin

40% Deposit Interest Free

Londoners are to receive a 40% Deposit Interest free from the Government. This is according to an announcement in the Autumn Statement for Chancellor George Osborne.

That was a major rabbit that he pulled out of his hat, completely out of the blue.

This is under the Help to Buy scheme.

Help to Buy Scheme

The Help to Buy scheme has worked very well outside London but not very well in London.

The Government offered 20% deposits, interest free, to those wanting to get on the property ladder.

However, this was not much use in London where property prices have soared out of all recognition.

A nice flat in a decent area could cost you close to a million pounds.

So, offering them a 20% deposit wasn’t going to do the trick.

IT Contractor Mortgages

Indeed, even IT Contractors, who are pretty well paid, would struggle to buy a first home in London.

A contractor who earned £400 a day would be able to borrow close to half a million using specialist contractor mortgage brokers.

However, he, or she would be left scratching around, even at that, for a home in a decent area.

So, now contractors in London, who wish to purchase a new home, will qualify for this 40% deposit.

5% Deposit for UK Contractors

With this new initiative, or latest version fo the Help to Buy scheme, contractors would need to stump up jus a 5% deposit and the Government will stump up another 40%.

This will leave lenders just needing to stump up a further 55%.

Because the lenders are loaning just 55% it means that they are likely to loan money at lower rates than a lender asked to stump up 90% or 95%.

40% Deposit Interest Free laons for London contractors

40% Deposit Interest Free loans for London contractors

Nationwide Mortgages Just for Contractors

It’s expected that the Nationwide Building Society are going to want to have a piece of this action.

One specialist contractor mortgage brokers have a current deal with them to get contractors mortgages at great rates.

A high street building society, or bank, would ask contractor to produce three years worth of accounts to get a mortgage offer.

They would base that mortgage offer on a multiple of their Director’s salary.

That’s not much use.

This specialist contractor mortgage broker has a deal with the Nationwide specially for them that provides mortgage offers to contractors just on production of their contract.

House Prices to rise for for UK Contractors

House Prices for UK Contractors

Mortgage Offer based on Daily Rate

Furthermore, they will base that mortgage offer on their daily rate annualised.

So, if their daily rate was £400 a day, the offer would be likely to be £400 x 5 x 48 (weeks) x 4.

Therefore, it is expected that Nationwide will give a new deal to London contractors with a rate as low as 1.59% fixed for 2 years with a £999 arrangement fee.

For more details on this , or to apply, all you need to do is click on Contractor Mortgage Application and fill in the form there.

Help to Buy Property Boom sends Housing Market Soaring

Posted on February 16, 2015 by admin

Help to Buy Property Boom

House Prices soared by £6,000 just last month in England and Wales boosted by a Help to Buy Property Boom.

That’s up 2.4% in just a month.

There was a fall of 4% in the number of new sellers.

Everyone knows that, according to the Economic Laws of Supply and Demand, if the Demand remains the same and the Supply (of housing) decreases then the price of that commodity (houses) will rise.

So, that’s what has been happening.

Buy To Let Property Owners

It seems that Buy to Let property owners are hanging onto their properties. It also seems that Buy to Let investors are long-term investors and are less likely to sell than other property owners.

With more Buy to Let property owners about, that is decreasing the supply of properties for sale even further and pushing up the price.

With mortgage rates at record lows and the Government helping new property owners to get 95% mortgages, there is a Help to Buy property boom on full flow.

Many people’s houses are earning more than the people who live in them.

Lenders Competing for Customers

Estate Agents are saying that they are seeing the lowest ever level of quality properties on the market. No one is selling except those who have to, as they watch their house prices rise and rise.

Lenders are now having to compete aggressively for customers and UK Contractors are taking advantage and sealing in these great rates. There’s a mortgage war happening at the moment and a Help to Buy Property boom.

Specialist contractor mortgage brokers are getting contractors fantastic rates, at the moment, based on just the production of their contract. They are also getting them 95% Help to Buy mortgage offers based on their daily rate annualised.

For more information see Specialist Contractor Mortgages

Contractor Mortgages market boost from Help to Buy

Posted on January 14, 2015 by admin

Contractor Mortgages Market Boost

There has been a major contractor mortgages market boost from the new Help To Buy programme implemented by the Government.

Of course, we all know that Help to Buy was brought in by the Government to raise the price of houses so that there would be a feel good factor at the next election. People would feel a bit better off if their houses were rising in price.

However, the contractor mortgages market boost that the Help to Buy scheme has produced has been positive for contractors. It has especially allowed new contractors to get on the property ladder.

Banks and Building Societies

Previously banks and building societies were demanding a 20% deposit from those seeking loans. That was keeping first time buyers out of the market. It is first time buyers who are the lifeblood of the market.

The economic Laws of Supply and Demand kick in here. If there are fewer people competing to buy houses then the price will fall. If there are more people competing for houses then the price will rise. Those first time buyers will become second house buyers at some point.

Average house prices for first time buyers rose by 11% last year compared to 9.5% for existing owners.

Help to Buy Scheme

The Government’s Help to Buy scheme has caused this contractor mortgages market boost. Now, new buyers only have to come up with a 5% deposit instead of a 20% deposit. That makes a huge difference and has brought plenty of people into the market.

First time buyers last year paid an average Â£208,000 for their first homes. A 5% deposit would have come to an average of Â£10,400 which is easily payable by a contractor. A 20% deposit would come to Â£41,600. Even contractors would have to wait a while to gather that deposit.

UK House Prices

Existing owners paid an average of Â£312,000 for a house. UK house prices rose 10% overall last year. With a rise of 10% last year that gives a rise of 21% in two years.

Contractors would be much better to get their contractor mortgages through specialist contractor mortgage brokers as they get better rates and better offers and don’t have to show accounts.

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

Best Contractor Mortgages Rates & Offers

Best Contractor Mortgage Rates

Posted on December 28, 2014 by admin

Best Contractor Mortgage Rates

You usually get the best contractor mortgage rates from using specialist contractor mortgages brokers.

High street banks and building societies usually look upon contractors as a risk. To their minds, contractors don’t have regular income like a permanent worke doesr.

So, if you walk into one of those looking for the best contractor mortgage rates you are going to be disappointed. It is usually the case that contractors have to provide three years worth of accounts to them. Furthermore, they base the offer that they give the contractor on their Director’s salary. That doesn’t get you much.

Specialist Contractor Mortgages Brokers

Because they are considered a risk the mortgage rate they are offered is usually quite high. So, that’s why contractors should use specialist contractor mortgages brokers if they want to get the best contractor mortgage rates.

They can even use Help To Buy to get contractors offers of up to 95% of the property value.

One such specialist contractor mortgages broker is Tony Harris. He has been getting IT Contractors mortgages for over 10 years. Now he is able to get all sorts of contractors mortgages.

Best Contractor Mortgage Offers

He can get the best contractor mortgage rates because he has built up credibility over the years with lenders. Contractors have helped him get this credibility by contractors paying their mortgages regularly. They have not defaulted on their mortgages.

So, that’s why Tony is able to get the best contractor mortgage rates for contractors. He can also get offers based on their daily rate. Multiply your daily rate by 5, then 48 and then 4 to get what your likely mortgage offer is likely to be.

Often the offer is better than market rates. Thank your fellow contractors for giving Tony his credibility so that he can get you the best contractor mortgage rates.

The other great thing is that he is able to get the best contractor mortgage offers just on production of your contract. You don’t have to produce three years worth of accounts.

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

Best Contractor Mortgages Rates & Offers

House Prices to Rise by 30%

Posted on October 12, 2014 by admin

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

Help to Buy scheme – Can I use it? | Contractor Mortgages

Posted on June 16, 2014 by admin

Help to Buy Scheme

Would I be entitled to use the Help to Buy scheme?

The government has been under increasing pressure recently to review the Help to Buy scheme as it has been brandished as the catalyst for the so-called ‘housing bubble’. It would be quite damaging if the Chancellor was to turn his back on the Help to buy scheme now. This is because so many first time buyers have now got a foot up on to the housing market across the UK.

Official figures from the Department of Communities and Local Government have announced that approximately 74 borrowers are purchasing a house through Help to Buy on a daily basis.

Help to Buy Mortgages for UK Contractors

Specialist Contractor Mortgages

The Help to Buy scheme has enabled many prospective buyers who have been stuck on the sidelines of the property market. This is because they are unable to put together the necessary deposit. The average deposit put down by a borrower on the Help to Buy scheme was £13,031 in April. This compares to the average deposit of £61,325 from a buyer not using the scheme.

As a Contractor you too can benefit from this excellent scheme. There are certain criteria to meet in order to qualify. Equity loans are available to both first time buyers and home movers on new build homes in England. This is for a purchase price up to £600,000.

Who Is Eligible?

However, you would not be eligible if you already own a property. Also, you cannot sub-let the property. You require a 5% deposit. The Government will give you a loan up to 20% of the price. You will need to obtain a mortgage to cover the remaining 75%.

Please click on Specialist Contractor Mortgages. Then fill in the contact form for further details of the Help to Buy scheme rates. They’ll give you the current Halifax free valuation offer.

Contractor Mortgages: Help to Buy sending house prices soaring

Posted on January 20, 2014 by admin

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 Â£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

Posted on November 11, 2013 by admin

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

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