Tag: Contractor Mortgages

10 top tips for securing contractor mortgages and loans

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Contractors can improve their chances of securing a contractor mortgage o loan by understanding how lenders rate their customers and by adopting some basic financial strategies. Therefore, the greater understanding they have of how lenders think the greater chance they will have of securing finance for their dream home.

The following some of the top tips for securing contractor mortgages and loans;

  • Avoid high street lenders

Contractors often find that they receive an initial positive response from high street lenders such as banks and building societies but are then turned down for a mortgage once they put in on their new home. This is because high street lenders initially only conduct a superficial credit check.

  • Find a lender happy to use annualized contract rates to set lending limits

The good news to contractors is that those lenders and mortgage brokers who understand them use an annualized contract rate when calculating how much they can borrow. Contract-based underwriting takes a contractor’s daily rate and multiplies it typically by 48 weeks per year to come up with an annualized rate.

  • Use your company accounts to back up you mortgage or loan application

Freelancers, who tend to work on a project and ad hoc basic rather than having a contract, qualify for special underwriting which uses the salary plus the net profit of the business based on company accounts. When applying for mortgages, freelancers need to supply up to three years of accounts, three months of bank statements and two forms of identification.

  • When doing your sums, remember you cannot use company money for offset mortgages

Contractors can run up huge cash surpluses during the year made up of money saved for corporation tax, income tax and VAT. But this money belongs to the contractor’s and not them personally. However, this does not stop contractors from utilizing this popular loan type as many link their savings and current accounts to the offset account to significantly reduce their mortgage interest.

  • Make sure you achieve and maintain a good credit rating

Contractors must have a good credit rating to ensure they qualify for the most competitive contractor mortgages. Contractors can have a shock in some circumstances, finding that their potential lender rejects their application because of something in their past.

  • Understand how targeted lenders use credit ratings

Most lenders use a bespoke algorithm to evaluate credit scores and create an internal score card for each contractor.

  • Big deposits win

Contractors with large deposits are more likely to secure a mortgage. Lenders look at the contractor’s credit profile and their loan to value ratio. Contractors with smaller deposits borrowing with a high loan to ration may have to answer more questions and jump through more hoops because the lender views them as a bigger risk.

  • Avoid breaks in competing

One of the attractions of the contracting lifestyle is the ability to take long breaks for holiday, travel and any other reason. However, if those breaks exceed eight weeks over an average 12 month period, then lenders start to have concerns.

  • First-time contractors can qualify for mortgages

Despite the requirement for a track record, there are lenders who will offer first-time contractors competitive mortgage deals. A track record will secure the best deals but first-timers can get their foot on the property ladder.

  • Work out if you can afford the repayments

Many people only look at how much they are permitted to borrow rather than how much they can afford to borrow.

For more detail: http://www.mortgages4.contractors/

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What is Contractor Mortgages and how to secure the best mortgage deal?

 

We all know what a mortgage is, but there are only a few people that know and understand what a contractor mortgage might be. This is because not everyone is considering this type of mortgage. However, if you are considering starting your own building company, you need to know what this type or mortgage is and how you can secure the best mortgage deal. Here are some of the information that you need to know, so that you can make the best decision on what type of mortgage to get.

What are a contractor mortgages?

The first thing that you need to know is what a contractor mortgage actually is. This is a mortgage or a loan that you can get if you are a contractor and need to build a building without having trouble with buying the things needed to build the building.

You are repaying the loan, the moment that the building is finished and when the new owner of the building has paid you. This is a loan that you can’t get if you are not a contractor. You need to be able to proof that you are actually a contractor and that you are needing the money to build the building without any financial problems.

Getting the best mortgage deal?

It is important to make sure that you are going to get the best contractor’s mortgage deal, when you are looking for a mortgage. There are some of the mortgage brokers and lenders that don’t like giving contractors mortgages, and therefore they are not really giving them the best possible deal.

You should do your homework and make sure that you know what the best deal will be when you are a contractor and looking for a mortgage for getting money to build a property. You should not use the first and best mortgage that you can find.

Tips when choosing a contractor mortgage

You should make sure that you know all these tips when you are going to choose a contractor mortgage lender when you are looking for this type of mortgage. This is the only way that you can be sure that you are going to get the best possible deal.

The first tip is that you should do as much research as possible and find the mortgage lender that is going to provide you with the best service possible. You should also make sure that you are getting as many quotes as possible. This is to be able to find the one mortgage that is offering the lowest interest rate and that is offering the lowest premiums.

When you are a contractor, you need to know as much about the type of mortgage that you can get. This is to be able to have enough money to build the building without any problems. You don’t need to get a normal loan or mortgage to be able to pay for the building process. You can choose a contractor mortgage to assist you financially, until the new owner is paying you. Check more this : http://www.mortgages4.contractors/.

 

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Getting the Best Mortgage for Contractor – Simple Steps to Find the Best Mortgage Broker

Searching for mortgages for contractor can often get most a little confused because some lenders won’t offer contractors a mortgage. It is a strange area for some reason but that shouldn’t stop you from finding the best mortgage. There is always the chance to buy a mortgage even when you don’t earn a huge amount of money. The following are just a few simple steps you may want to try to find the best mortgage broker.

Look Specifically For a Contractor Mortgage Broker

When it comes to finding mortgages for contractor you ideally want to consider a mortgage broker. However, there are certain mortgage brokers that won’t work with those in the contracting business. It may seem strange but contractors are technically self-employed even though many work for big companies but for some reason brokers believe there is a bigger risk associated. Since there is a risk, some brokers won’t help but don’t worry because there are lots of mortgage brokers who specialize in finding mortgages for contractors. You absolutely need to look for these brokers so that you can get the best.

Check Out Their Reputation

When you have found a few brokers you like the sound of then it’s time to check them out a little better. The reason why you need to check out the broker is simply so you can find the best mortgage for contractor. If the broker isn’t really good at their job then they may not be able to find the right mortgage which is why you need to look at their reputation. How strong is their reputation? Do you like what you’re hearing about the broker? If you are seeing only positive things about the broker in question then that is a great indication of who you are working with.

Look At the History and Experience of the Contractor

You also need to think very carefully about the contractor mortgage broker and their experience within the industry. Does the broker have sufficient experience in dealing with contractor mortgages? You also need to look at their history and whether or not you feel happy with the amount of experience they have had with dealing with these types of mortgages. If you aren’t then you know you need to keep looking.

Understand How the Fee Process Works

While every broker handles their fees differently it’s still important to understand what you will be charged if anything, and how much. Mortgages for contractors are a lot easier to find than you think when you go through a broker but at the same time, you don’t want to be charged an excessively high amount. It’s important to take note of what you are happy to pay for the broker and what they are asking.

Only Choose the Best

Mortgages are complicated things simply because there are so many options available today. For some they will say one mortgage doesn’t quite suit what they need and others say they just aren’t sure what to look for. That is why a broker is needed because they can help you find the best mortgage. A contractor mortgage broker is the person to talk to when you want a mortgage.

Find out more informations here: http://www.ameritekmortgage.com/if-you-need-a-florida-mortgage-we-are-a-broker-you-can-trust/

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Contractor Mortgages – No Stamp Duty for first time buyers

There are benefits to mortgages for contractors when the contractor is a first time buyer. Contractors usually have a hard time in general getting a good mortgage offer anyway. Contractors who are well-qualified can have various offers to choose from when applying for a mortgage for the first time. This is where contractors must be knowledgeable when applying for the mortgage.

First Time Contractors

With the use of contractor mortgage brokers, first time contractors afford competitive mortgage rates. The contractor should have at least three years worth of accounts if the mortgage application is submitted through a high street bank. If a first time contractor who is new to contracts, would be turned away if an application is submitted before the three years the establishment requires. As long as a contractor uses a specialist contractor mortgage broker. First time contractors can receive mortgage offers based on their daily rate annualized.

Stamp Duty

If you are purchasing a property, in some instances, you will not need to pay a stamp duty for certain mortgage rate schemes. This can significantly reduce the contractor’s buying costs. Each year, contractors are pushed into the stamp duty bracket. The contractors are pushed here because of the offer that they put on a property. This issue can leave potential homeowners paying an extra three percent of the property value. With the deposit rate being ten percent, first time buyers can access a two year mortgage rate of 4.79 percent. If the contractor can provide a larger deposit, the fixed rate is around 3.04 percent. This mortgage rate will most likely be one of the best mortgage for a contractor that will be given. Find out more information here.

Contractor Mortgage Offers

For a first time contractor, mortgages for contractors can receive specialist contractor mortgage brokers that are offered to contractors on the first day of their very first contract. Contractors are encouraged to invest in property. The contractors that invest wisely in property, find themselves in great financial status. Most contractors are able to make more money through investments than that of what they make themselves. Contractors have ways of making their money work for them in the time before the mortgage application is submitted. At low-interest rates, property is a great way in making the most of what the contractor put into the investment. This fact means that contractors are able to save more, if they invest in property, in order to assist them later on in the mortgage application process. With the saved money, the contractor would be able to put more money down as a deposit in turn receiving a lower fixed mortgage rate. Check out more offers in this link: https://www.freelancerfinancials.uk.com/mortgages-for-contractors/

There are many different approaches that first time contractors can take when submitting a contractor mortgage. There are many ways in which a first time contractor can save up and make the most out of their money and save it for when they are ready to have a more solid application that would be less likely to be turned down or denied. Contractor mortgage brokers are available to assist contractors in the process as well.

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Why Getting Contractor Mortgages Shouldn’t Be So Hard?

Contractor Mortgages

Contractor mortgages are fast becoming popular for millions. As more people struggle to find work within the regular sectors, it means they are taking work whenever and wherever they can. Some turn to becoming self-employed and even though they are earning money, mortgage companies don’t like the idea of handing out money for a new home.

Why Are Self-Employed People Believed To Be A Risk For Mortgages?

First and foremost, those who work casually, for themselves or as a freelancer, are often called contractors and as such don’t work for the same company all the time. Some freelancers can work for the same company but they are still contractors and it means they are at higher risk of being terminated than what regular 9-to-5 employees. At least, this is what most mortgage lenders believe anyway. However, since contractors aren’t regular workers they are considered to be a higher risk than most which is why a contractor mortgage broker is becoming necessary.

You Earn Money So Getting Contractor Mortgages Shouldn’t Be Impossible

The most important fact to remember is that as long as you’re working, you are earning money and it doesn’t matter if you work independently or with an actual business you do earn money. If you are earning a good amount then you should be able to obtain a mortgage without too much trouble. Maybe regular lenders wouldn’t take a chance on you but contractor mortgage companies will. This is something to remember and if you want to buy a new home why not contact a contractor mortgage broker to see if you are going to be eligible for a mortgage with them?read post here!

More Companies Are Willing To Take a Chance

Contractor mortgages are some of the very best types of mortgages available today since they work just like a regular mortgage with the exception they’re designed especially for those classed as contractors. There are now more mortgage lenders who are willing to lend a hand for new buyers and it isn’t difficult to see why. Contractor mortgages are very much simple and yet they have become vitally important for most people.

Strong Credit and Good Finances

However, it really isn’t too difficult to obtain a mortgage even if you are a contractor. the reason why is simply because once you have good finances and have a deposit or down payment saved up; as well as have good credit, you should become eligible. Now, credit is a tough thing to build on so you may have to work extremely hard for this but hopefully it won’t be too difficult to handle. You can ask a contractor mortgage broker and find out more.continue reading at http://www.contractorcalculator.co.uk/contracting_experts_predictions_year_510910_news.aspx

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A Mortgage Can Be Easy To Obtain

The greatest thing about contractor mortgages is that they are far easier to be eligible for when you have a good earning potential. Of course, if you make very little then you aren’t likely to buy a home then again if you do earn good money, there shouldn’t be too much of a problem. You may benefit from talking to a contractor mortgage broker today.

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Contractor Mortgages: The Best Way to Secure a Competitive Mortgage

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There are hundreds of different types of contractor mortgages to choose from and sometimes it can be tough to know which is best. However, you aren’t looking to get just any mortgage you want the very best so that you aren’t wasting time or money. Securing a mortgage can be simple at the best of times but finding a competitive mortgage can be a little tougher. So, how should go about securing a competitive mortgage today?

Talk To a Contractor Mortgage Broker

First things first – get some advice from a mortgage broker. Now, you may not think these people are necessary however they will be when it comes to getting a competitive mortgage. These are the best people to help find you a mortgage best suited to your needs. You aren’t going to get any better help than when you go through a contractor mortgage broker.

Compare All Mortgages

You are going to have a variety of mortgages which you are eligible for but some of them may not really be suitable for you. Even when you have a broker, you still have to make the final decision yourself which means looking at all mortgages available. Compare each and every mortgage and find out which is best for you personally and financially. Contractor mortgages vary and they all offer different things so take the time to compare what are out there right now.visit website here!

Don’t Settle For Just Any Mortgage

There are a lot of mortgages available today and as such the choice can be at times overwhelming so don’t get confused. This isn’t a decision to be taken lightly, it takes real time and a lot of thought to find a competitive mortgage and if you don’t analyze each mortgage you could end up opting for the wrong mortgage. That is why you have to take your time and carefully analyze every option available to you and this means looking at the interest rates and all other aspects. You want the best contractor mortgages.

Analyze Your Finances

The mortgage payment each month can vary considerably depending on how long you take the mortgage out for and the type of home you buy also. However, you need to have a fair idea as to how much you can afford to pay. You might not think this will secure you a competitive mortgage but it is still an important factor to consider. After all, you are looking to secure a competitive mortgage and unless you have the finances to back you up, you won’t get anywhere. Consult with a contractor mortgage broker when you have concerns about your finances.go to this website from http://www.mercurynews.com/crime-courts/ci_29393934/former-marin-mortgage-broker-sentenced-prison-ponzi-swindle

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Securing A Mortgage Can Be Simple

Anyone can apply for a mortgage but when it comes to securing the best or a competitive one, it can be very easy. When you take the time to look at what mortgage options are available to you and understand which mortgage will work for you then it makes it a lot simpler to choose one. Contractor mortgages are great and they may be the answer to you buying a new home.

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