Mortgage Blog
This blog combines contractor-specific updates on the mortgage, finance and housing industries with our unique insight and experience, gleaned from serving self-employed workers since 2004.
Renaissance amongst lenders, but is it too little too late?
Posted by on November 23rd, 2015 in Mortgage Blog
Reading the news last week was heartening for contractors in one respect. There are more new mortgage lenders prepared to work off day rates than ever before.
The bad news? National headlines in the Guardian and Mail Online made dire reading. They reported that Chancellor Osborne is gunning for contractors yet again.Continue reading about Renaissance amongst lenders, but is it too little too late?
What are contractor mortgages?
Posted by on October 7th, 2015 in Mortgage Blog
To understand contractor mortgages, you first have to understand contracting. That may, and should, sound obvious.
But it would surprise you how few mainstream lenders 'get' contractor payment structures. Limited company and umbrella contractors face a constant battle proving what they can afford. Or it definitely seems that ignorance at branch and call centre level is rife.
The good news is that, if you're a contractor looking for a mortgage, we can help.
Continue reading about What are contractor mortgages?
Halifax slashes mortgage rates for first time buyer contractors
Posted by on September 18th, 2015 in Mortgage Blog
For a limited time, first-time homebuyers with at least a 10% deposit can fix 2.94% for two years. This is nothing short of an absolute bargain.
The new 2-yr fixed interest rate represents a cut of 0.45% off its previous 3.39% deal. In mortgage terms, that’s a substantial reduction or should I say 'saving', for borrowers.Continue reading about Halifax slashes mortgage rates for first time buyer contractors
First Time Buyers Account for 3 in 10 Home Sales (Feb 2015)
Posted by on April 1st, 2015 in Mortgage Blog
Many contractors still believe that first-time buyer mortgages are off limits to them. They're not, of course. But let's look at why this myth persists. Moreover, what independent contractors need to do to get that first step onto the property ladder.
I was taking a good look at the February 2015 Housing Report figures from NAEA. From nowhere, a flash of lightning and, Ping!: Eureka!.
The desire to become your own boss is higher than ever. The problem is, the infrastructure of UK finance isn't keeping up with those aspirations!
The catalyst for this 'light bulb' moment? The record 15% self-employed figure, and the testimonies of people who make up that figure. Each boss quoted raised genuine concerns about everything from mortgages to pensions.
Digging further, I came upon a subsequent report that showed the other side of the coin. Yes, it's great that more people are seeing the advantages of self-employment. But the flip side is a new glut of people likely to be unclear or apprehensive about how independent working affects them financially. So let's look at what lenders expect of the newly self-employed.Continue reading about First Time Buyers Account for 3 in 10 Home Sales (Feb 2015)
The High Street Lending Model – why it sucks for contractors
Posted by on January 13th, 2015 in Mortgage Blog
We've had mixed reviews of our video highlighting the problems self-employed people face looking for mortgages on the High Street. And, to be honest, we fully expected a reaction. Yeah, we weren't disappointed. But we stand by what we say in the video - it needs shouting from the rooftops.Continue reading about The High Street Lending Model – why it sucks for contractors
Has Help-to-Buy increased mortgage likelihood for contractors?
Posted by on December 10th, 2014 in Mortgage Blog
Update, September 2021
n.b.:
This page is for historical value only!
In 2021, Help to Buy changed beyond description, with only two government "Affordable Home Ownership" schemes now available for new applicants.
You can find info about the new schemes on our updated Help to Buy/Shared Ownership guide page. Thank you.
</update>
Continue reading about Has Help-to-Buy increased mortgage likelihood for contractors?
Do I need a bigger deposit for a contractor mortgage?
Posted by on November 14th, 2014 in Mortgage Blog
One of the biggest myths in our industry is that deposits for contractor mortgages are greater than normal. Yes, you are at an advantage if you can ‘put more down’. But you’re no more obliged to than permanent workers are.
In this article, I’ll clarify:
- Why 100% mortgages have all but disappeared;
- The minimum contractor mortgage deposit required;
- Why the more you put down, the better off you’ll be in the long run.
Ready? Here we go.Continue reading about Do I need a bigger deposit for a contractor mortgage?
Mortgage options for contractors with Leeds Building Society
Posted by on October 29th, 2014 in Mortgage Blog
Leeds Building Society is the latest lender to add contract-based mortgage underwriting to its product range. The building society is rolling out this outstanding addition to its portfolio in phases.
That means there will be a pilot period. During the trial, the mortgages are only available through a select number of specialists.
I'm over the moon that Leeds BS has chosen Freelancer Financials for the wider rollout to clients.
Continue reading about Mortgage options for contractors with Leeds Building Society
What took Halifax so long to offer non-IT contractors mortgages?
Posted by on September 11th, 2014 in Mortgage Blog
Halifax was the first High Street lender to offer IT Contractors mortgages. Yet, up until 2013, the bank’s underwriters recognised no other contracting sector. If you weren’t an Information Technology professional, you didn’t qualify for contract-based underwriting.
We're happy to announce: that's changed! Halifax now offers mortgages to contractors outside of IT. But it's taken a long time for them to remove that barrier.Continue reading about What took Halifax so long to offer non-IT contractors mortgages?
How do I find a contractor-friendly mortgage lender?
Posted by on July 2nd, 2014 in Mortgage Blog
Before applying for a mortgage directly to a bank, we advise contractors speak first to a specialist broker. In particular, one who has an excellent track record in helping freelancers and contractors (like us).
I know. We'd forgive you for thinking:
"You would say, that, wouldn't you?"
But we say it for good reason. That's because we urge caution when approaching High Street banks for a mortgage as a contractor.
Based on over two decades of award-winning experience, we can confirm with certainty three things:
- untrained advisors in-branch and through call centres won't be able to see your real mortgage affordability;
- multiple failed applications and credit searches will leave a footprint on your history;
- Hint: this is not good, especially if your credit score is already borderline;
- most High Street lenders do not 'get' contracting at branch or call centre level;
- at best, they'll offer you a self-employed mortgage, which is not the same as a contractor mortgage.
Continue reading about How do I find a contractor-friendly mortgage lender?
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