Posted by December 8th, 2020on
Since exiting lockdown (December 2020), several lenders have now relaunched 10% deposit mortgages. Many, including several contractor-friendly lenders, are hoping to tempt low-deposit buyers before the Stamp Duty holiday ends.
But buyers shouldn’t get complacent. The current processing time of mortgages is double the norm.
The upshot? There’s only a small window remaining to make the most of SDLT‘s reduced rate. Today, we consider:
- the recent history of low deposit lending,
- the immediate future of high LTV,
- the relationship between low deposits and lender ‘risk’ assessment, and
- what you can do to avoid the worst of new, higher interest rates.
Continue reading about 10% Deposit Mortgages in a Post-Lockdown World
Posted by November 6th, 2020on
Wednesday night saw the second annual Contractor Awards ceremony. How different compared to the inaugural event it was, thanks to the pandemic.
Last year, we enjoyed an extravaganza at the Grand Ballroom at The Montcalm, Westminster. This year, a 50-minute live YouTube event with a chat-thread, compered by comedian, Ian Moore.
Nonetheless, it was a well-visited stream, with a convivial atmosphere amongst all participants. Our MC fair rattled through the nominees, sponsors and winners. And only with some nifty finger work did we manage to maintain ‘live’ commentary on Twitter.
Continue reading about Official: We Are the Best Contractor Mortgage Provider 2020
Posted by August 21st, 2020on
My biggest takeaway from the COVID-19 pandemic so far? Previously resolute lenders’ mortgage criteria are no longer set in stone. They have become dynamic, reactive and tenuous.
Each month, week, and day, borrowing terms change. Lenders seem not to work to an ethos or an ‘ideal’, as they have done up until now. Instead, they introduce or amend criteria based on the latest data sets and figures impacting industry sectors.
The new ‘normal’, so far as such a thing exists, includes lenders:Continue reading about COVID-19’s long-term impact on mortgage lending
Posted by June 5th, 2020on
On the face of it, here we are: moving tentatively towards the other side of lockdown. As an industry, a nation, a world of one people, we’ve longed for the lifting of lockdown restrictions since their imposition. So, now that we’re within touching distance, what does ‘back to normal’ mean?
COVID-19’s impact has turned most people’s lives upside down. For contractors in particular, the pandemic has had a huge impact on mortgage availability. But we’ve all faced different hurdles, both at home and at work. The experience has left many of us bruised, battered and unsure of what happens next.
- Slim pickings for low deposit mortgages;
- Update, 23rd August, 2020: low deposit mortgages in constant flux;
- The problem with mortgage payment holidays (especially if you don’t need them);
- Alternatives to payment holidays;
- Extra checks for new mortgage applications;
- Remortgaging Options;
Continue reading about COVID-19’s Impact on Mortgage Availability and Accessibility
Posted by May 7th, 2020on
If you’re a contractor on reduced income as a result of the COVID-19 pandemic, you may be tempted to take a mortgage payment holiday. I’d urge you to think before making that leap.
Most lenders are offering a 3-month break from paying your mortgage (plus loans and credit cards) while we remain in lockdown. If we don’t get the virus under control, they may have to rethink and extend that position.Continue reading about Mortgage Payment Holidays: Good or Bad for Contractors?
Posted by November 12th, 2018on
We get that First-Time Buyers often struggle to get onto the property ladder. For those trying to buy their first home on their own, it can be even more difficult. Saving the deposit, securing the mortgage, solicitors fees and budgeting for Stamp Duty? The costs keep adding up in a relentless spiral.
But borrowers got a hand up from an unexpected source in 2017. In the Autumn Budget, The Government introduced Stamp Duty relief for first-time buyers. Here’s how it works: Continue reading about The Smart Way for First-Time Buyers to Save on Stamp Duty
Posted by September 20th, 2018on
If you have a fixed rate mortgage, the BoE base rate rise in August need mean little to you. At least not yet. But when your fixed rate ends, you’ll drop onto your lender’s variable rate. That’s when the rise—the first in a decade—will affect your repayments.
If you’re already on a variable or tracker rate, your repayments will increase immediately. Here’s how you’ll feel the result of that increase in your pocket, contractor or not.
The historic low rate had to end someday
Continue reading about How does a BoE base rate rise affect my mortgage repayments?
Posted by July 20th, 2018on
You’re an experienced contractor working in the public sector. Over time, you’ve become smart. You predicted the issues with automatic payroll. So on balance, you opted to work through an umbrella company.
You’re not alone. Nine in every ten public sector contractors now use umbrella company payment structures.
And now that you’ve got payslips, you think: “Yes! Getting a mortgage now will be a doddle!” Right?Continue reading about Even with payslips, High Street mortgages elude umbrella contractors
Posted by April 18th, 2018on
Joe Public’s largest ever financial commitment is often buying a home. You’d expect handling that transaction would assume a certain amount of responsibility.
But the fact is, estate agents are ripping homebuyers off when it comes to the mortgages they offer.
The government is planning to put a stop to these practices. In the interim, current practices are bad enough for unsuspecting employees. But when estate agents force their own mortgage lenders on specialist borrowers? It can spell disaster.
Continue reading about The Great Rip Off: How Estate Agents Cash in on Your Mortgage
Posted by December 29th, 2017on
Freelancer Financials has championed the cause of IT (Information Technology) contractor mortgages for a decade. Most mortgage underwriters also recognise the high income potential of digital placements. At least they see that potential in principle.
Getting those same underwriters to adopt lending policies tailored to the IT sector? That’s where our job becomes more difficult.Continue reading about Why IT (Information Technology) Contractor Mortgages are Different