Mortgage Blog

Freelancer Financials joins FCSA as official business partner

Posted by John Yerou on May 26th, 2023 in Blogs, Mortgage Blog

Our mortgage and protection services are now available to Freelancer and Contractor Services Association's 200,000+ network of independent professionals!

London, 26th May, 2023 - Freelancer Financials can today announce our official partnership with the Freelancer and Contractor Services Association (FCSA). The agreement avails FCSA's 220,000-member network of our specialist mortgage services and related insurance cover products.

"We are excited to welcome Freelancer Financials as the latest FCSA Business Partner," said Chris Bryce, Chief Executive of the FCSA.

"Freelancer Financials is a leading contractor mortgage and protection specialist for independent workers, and their partnership will be a valuable asset to our community."

What this partnership means for FCSA members

"We're thrilled to join the FCSA and become a part of this vibrant community of independent workers," said John Yerou, Managing Director and founder of Freelancer Financials.

"Since our inception in 2004, we've devoted ourselves to changing lenders' biased attitudes towards professional contractors and freelancers.

"We have a solid history of approaching lenders directly and helping them develop their own contractor-friendly underwriting criteria. We maintain these relationships daily, safe in the knowledge that specialist underwriters know how to assess independent professionals' true mortgage affordability.

"FCSA's contractors can now get mortgages based on what they're really worth: their top-line day rate!

"Irrespective of their trading structure—Ltd or PAYE Umbrella, in- or outside IR35—professional contractors and freelancers can borrow based on their gross contract income. We look forward to working with the FCSA to support the independent workforce."

About Us

Freelancer Financials is a family-owned, independent brokerage of 37 people, winner of multiple awards, and was launched with the sole intention of helping those with specialist incomes own their own homes.

For more information, visit fcsa.org.uk.

Housing Market Movement Oct/Nov 2022 by numbers ~Halifax

Posted by John Yerou on December 14th, 2022 in Blogs, Mortgage Blog

Today's post is all about the contractors' longstanding best buddy when it comes to mortgages: The Halifax Bank.

First, we look at the lender's report on November house prices.

Then, we look at their most recent assault on the recent rise in interest rates.

The latter by no means return to the historic lows of last year. Or even the optimistic lows of earlier this year, if truth be told. But they do represent a sea change.

Combined with reducing house prices, the drop in interest rates is significant. They might be the first signal that the housing market is changing to a buyer's market for the first time in months, if not years.

Continue reading about  Housing Market Movement Oct/Nov 2022 by numbers ~Halifax

Good, bad & ugly: the rising base rate’s impact on mortgages

Posted by John Yerou on August 8th, 2022 in Blogs, Mortgage Blog

The Bank of England Monetary Policy Committee voted 8-1 to increase the Base Rate to 1.75% last week. That's the first time the Base Rate's been above 1.5% since 8th January 2009 (to which it dropped from December 2008's 2%).

When the MPC increased the Base Rate from 0.10% to 0.25% in December 2021, few would have predicted we'd reach this 13½-year high so quickly. And the likelihood is, it won't stop there.

What — if anything — can we gauge from the comments and reactions following this latest increase?

Moreover, what do all these changes mean for the many types of UK mortgage holders?

Well, for those on SVRs or coming to the end of their fixed term, it's time to lock in a new deal. For those with longer left to run, there are options, which we outline here.

Continue reading about  Good, bad & ugly: the rising base rate’s impact on mortgages

The rush to remortgage as interest rates almost treble

Posted by John Yerou on June 16th, 2022 in Blogs, Mortgage Blog

On Friday 4th June, 2021, I reported Halifax's remortgage rates around the 1% mark. A year on, mortgage interest rates look very different. The average two-year fixed rate is now almost three times more expensive than it was then.

Inflation, and the rising Base Rate to combat it, continue to climb. Here's what you can do to lock in a rate to see you through these turbulent times.

Rising mortgage interest rates: what's the story?

The Bank of England's Monitory Policy Committee met on 4th May and raised the Base Rate again.

They voted by a majority of 6-3 to increase Bank Rate by 0.25 percentage points, to 1%.

Those members in the minority weren't against raising the base rate. Rather, they'd have preferred to increase it by 0.5 percentage points, to 1.25%!

At the subsequent meeting on June 15th, those in the minority got their wish. From June 16th (today) the Base Rate stands at 1.25%.

This has fuelled the expectation that rates will continue to rise throughout the year. It's worrying, because lenders have already almost trebled their interest rates in a year.
Continue reading about  The rush to remortgage as interest rates almost treble

Ideal Buy-to-Let Contractor Investment Window Open (For Now)

Posted by John Yerou on February 25th, 2022 in Blogs, Mortgage Blog

For years, investing in property has benefited contractors looking to squirrel away their profits.

That same Buy-to-Let market is flourishing despite (or because of) rising interest rates and inflation.

Today, we take a quick dive into the figures that back up the trend. Moreover, what they might mean for rental income over the next couple of years.

We also gauge reaction from the industry, and how that bodes for the buoyant, bustling buy-to-let investment opportunity.

Table of contents

• UK Finance figures (housing market, whole);
  • 2021-23 overall gross lending forecasts (GBP);
  • 2021 homebuyer transactions (volume);
  • 2021 borrowing catalysts;
• Buy-to-Let report, Shawbrook Bank;
  • Factors indicating imminent Buy-to-Let growth;
• Industry reaction:
  • Joshua Elash, MT Finance: bigger yields in the pipeline;
  • Aaron Strutt, Trinity Financial: lenders compete at criteria level;
  • Propertymark: availability will restrict market performance;
  • Gerard Boon, Boon Brokers: Ltd Co. Buy-to-Let applications rising;
• Interest rates could drive a surge in BTL remortgages;
  • This window of opportunity won't stay open for long.

Continue reading about  Ideal Buy-to-Let Contractor Investment Window Open (For Now)

Mortgage Strategy Awards Nomination: Best Specialist Broker/Distributor

Posted by John Yerou on January 14th, 2022 in Blogs, Mortgage Blog

7^th April, 2022:
update to our previous longlist announcement

Freelancer Financials makes the shortlist for Mortgage Strategy's "Best Specialist Broker/Distributor" 2022

I'd like to thank everyone who took the time out to vote for us for this most prestigious accolade. You've made us so very proud.

Enough of you voted for us to enable us to make the shortlist.

On the back of that, we've had an interview with the Mortgage Strategy panel.

And, when they announced the longlist results earlier this week, we were overjoyed to see our name on the shortlist!

We're not counting any chickens yet. We're up against five other specialist brokers of varying sizes and who serve various markets.

The winner will be announced on the 25^th of May during the Mortgage Strategy awards ceremony at London's Grosvenor House hotel. We'll let you know how we get on but, until then, many thanks again. We couldn't have progressed this far without your support. #Legends!
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Using Umbrella Payslips to Get a Worthwhile Mortgage

Posted by John Yerou on December 3rd, 2021 in Blogs, Mortgage Blog

There was a time when contractors chose Limited Company payment structures over umbrella companies. That's because, working through a PSC, contractors retained more of their income than through an umbrella.

Even after paying an accountant, PSCs still made — and continue to make — financial sense. That is: from an income retention perspective.

And, yes: the difference in income persuades many contractors to overlook the risk of IR35's wrath.

Behind the scenes, we've also worked with many lenders to help them understand Limited Company day-rate contract income. So much so that our clients expect their application to breeze through the appraisal process.

Now, with another helpful nudge, many lenders are considering umbrella payslips, too.

So, up to a point: all good in the 'hood.

But, in our article today, I focus on the unforeseen struggles contractors who switch to an umbrella company face with mortgage lenders. It's an addendum to our recent post on ContractorUK, Why your umbrella payslip influences your mortgage application.

As ever, enjoy, comment, feedback to us. We're only too happy to help:
Continue reading about  Using Umbrella Payslips to Get a Worthwhile Mortgage

Sub-1% mortgages gone in a week, despite unchanged base rate

Posted by John Yerou on November 8th, 2021 in Blogs, Mortgage Blog

Even before the Chancellor dropped the mic on last month's budget, mortgage lenders were putting up prices.

The rises began, in part, thanks to the Governor of the Bank of England.

He stated that the central bank "[would] have to act" in the face of rising inflation.

Lo and behold, we have that scenario: inflation hovering around 3%.

However, he chose not to raise the base rate when he had the chance, last week.

This has left many commentators exasperated, but it might at least slow the rise in mortgage interest rates…
…might. No promises.

Continue reading about  Sub-1% mortgages gone in a week, despite unchanged base rate