Mortgage Blog

The Smart Way for First-Time Buyers to Save on Stamp Duty

Posted by John Yerou on November 12th, 2018 in Mortgage Blog

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:
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How does a BoE base rate rise affect my mortgage repayments?

Posted by John Yerou on September 20th, 2018 in Mortgage Blog

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

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Even with payslips, High Street mortgages elude umbrella contractors

Posted by John Yerou on July 20th, 2018 in Mortgage Blog

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?

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The Great Rip Off: How Estate Agents Cash in on Your Mortgage

Posted by John Yerou on April 18th, 2018 in Mortgage Blog

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.

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Why IT (Information Technology) Contractor Mortgages are Different

Posted by John Yerou on December 29th, 2017 in Mortgage Blog

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.

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Offset mortgages offer a “golden opportunity for contractors”

Posted by John Yerou on May 17th, 2017 in Mortgage Blog

Contractors ignoring offset mortgages could be overpaying £1,000s in needless interest. Recent research, reviewed here, highlights the scale of missed opportunity.

Table of contents:

• What can contractors gain from offset mortgages?
• How research helps us understand this strange aversion
• Accord research:
• Yorkshire research:
• Why the mass misconception of how offset lending works for contractors?
• What savings can count towards offsetting my interest?
• How does an offset mortgage work? An example using more than one savings account:
• What are the different types of offset mortgage?
• Our conclusion

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Can I get a mortgage on a fixed term or zero hours contract

Posted by John Yerou on March 29th, 2017 in Mortgage Blog

Can fixed term contract employees get contractor mortgages?

At Freelancer Financials, we’re used to people using us as a last resort. Mention any other type of employment contract to a lender than ‘permanent’, and, well. It’s as if a Dementor has sucked all the joy from your advisor’s world. Then, as a consequence, yours.

Let’s make no bones: our main client profile is that of the professional contractor. They often work through agencies and pay themselves through a limited company structure.

But there is another type of contract that’s becoming evermore popular. It’s sort of a mix between permanent employment and professional contracting.

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Does Santander Do Contractor Mortgages?

Posted by John Yerou on December 5th, 2016 in Mortgage Blog

Santander might be a great mortgage lender for permies on a PAYE salary. But for a contractor looking for a mortgage based on their gross contract rate or net profits? Then Santander is not the ideal bank for you…
…at least not if you want to buy a home that matches your earning capacity.

It can get complicated. Technically, a contractor could get a mortgage with Santander. And with the resources it has, you’d think the bank would be a safe bet:

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Chelsea Building Society – a no-no for genuine contractor mortgages

Posted by John Yerou on December 5th, 2016 in Mortgage Blog

Knowing where you stand with Chelsea Building Society is somewhat unclear. As a contractor today, the building society’s lending criteria is far from straightforward. As for the Chelsea brand itself, that too has been difficult to pinpoint since the credit crunch.

The reason for writing at all about Chelsea Building Society is to forewarn contractors. The only time we ever come into contact with them is by way of complaint. Here’s why.

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Clock ticks down towards Osborne’s legacy landlord tax

Posted by John Yerou on November 29th, 2016 in Mortgage Blog

Buy-to-let mortgages have been a useful tool for contractors over the years. The rental income ensures continuity of cash flow when they’re not working. When they are contracting, that same income is a great way to shore up their pension.

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