The Governments funding for lending scheme was first introduced in July 2012 but was greatly extended by the Chancellor in his 2013 Budget.
The benefits of the funding for lending scheme, in addition to Government schemes specifically aimed at new build property buyers, are certainly being felt in the Contractor community as our specialist IFA, Contractor Financials, have helped more Contractors to step onto or move up the housing ladder last month than at the height of the property boom in 2007. This rebound was largely thanks to increased confidence by Freelancers in the longer term prospects of the housing market combined with the more competitive mortgage rates and more relaxed criteria by Contractor friendly lenders which have helped make moving a reality for thousands more homeowners and first time buyers.
A mortgage tailored to your Contractor status
Despite the improvement in lending, Contractors are still struggling to secure mortgages on the high street because the bank or building society employees often fail to understand your Contractor status and earnings. This needn't hold you back from owning your own home however.
It is possible to secure a specialist Contractor Mortgage, which is calculated using a multiple of your annualised contract rate, so you won't need to prove your income using the traditional methods using your last three years accounts or payslips. This eliminates the problems that may arise if the Lender looks at your salary alone and so will have no impact on your ability to borrow. These specialist mortgages are not easily available if you approach a Lender directly on the high street so it could be better to apply through a Contractor specialist Independent Financial Adviser. You shouldn’t have to pay a fee for this service.
When you are searching for a mortgage, it is important to ensure that you secure the right scheme to suit your needs; you should make sure that the mortgage rate is affordable now and after any initially lower rate ends, that overpayments are allowed if you intend to make them and should also check any arrangement fees so you know exactly what is required upfront.
If you are interested in finding out more about Contractor mortgages and how the funding for lending scheme could help you buy your next home call 0845 062 8888 to speak to a specialist mortgage adviser at Contractor Financials or email firstname.lastname@example.org