After the global economy nosedived, many homeowners became prisoners to their existing mortgages. So much so that they found remortgaging difficult, if not impossible.
During the preferential rate, initial fixed term, the problem went unnoticed. But when their short, introductory term ended, that’s when difficulties began.
Post-credit crunch, banks and building societies tightened their lending criteria. So much so that when homeowners looked to remortgage, they couldn’t.
Great interest rates for contractors looking to remortgage making a comeback
For ‘mortgage prisoners’ in those circumstances, it was – and is – a case of ‘grin and bear it’. At least until credit scoring or their individual circumstances changed. But what do all these changes mean for contractors?
Securing mortgage finance as any type of self-employed entity was rarely a problem. Self-certify your earnings and, yes, you’d pay a higher interest rate. But at least you were on the property ladder.
It became more difficult for contractors to remortgage when the FCA questioned self-cert mortgages. Lenders pulled all such products from their shelves, closing that avenue off to everyone.
So, does that mean contractors have to stick with the interest rate they have? Are they tied into their high-rate mortgage for the duration of its term? Not one bit!
Halifax has opened the doors for contractor remortgaging
Recent changes have seen mortgage lenders consider contractors in a different light. The IT sector have been fine for some time: high demand, longevity and great day rates. The perfect recipe for any lender.
But other contractors continued to struggle to convince lenders that they were mortgage worthy. Then, the Halifax opened its doors to contractors beyond the IT sector.
This act by the Halifax was something of a catalyst. Up until then, lenders saw the contractor mortgage niche as specialised.
In many ways, it still is. But as the latter half of 2014 and 2015 have shown, more lenders want in. Now, Nationwide, Scottish Widows, Metro Bank and Leeds all offer a range of contractor mortgages too.
Remortgaging options
As a contractor, it’s easy to underestimate your bargaining power. When it comes to remortgaging a property, remember: you’re sitting on an asset.
Now more than ever, lenders are throwing their hat in the ring for your next round of mortgage finance. If your current mortgage repayments are in order, we can help you get that new deal on your existing home.
Unlike obtaining a new home loan, remortgaging can be quite a painless process. Since you took out your mortgage, your:
- contract day rate may well have improved;
- the likelihood is that your home has increased in value (depending where you live in the UK);
- perfect repayment history with your current lender has made your credit desirable.
These positives reflect in the fees, admin and turnaround compared to a first time buyer, say. If you wanted to remortgage now, you could: get an instant decision in principle (over the phone);
- borrow up to 95% of the value of your existing property;
- use your contract rate upon which to assess your remortgage affordability (not accounts!);
- incur no legal fees on many of our mortgage products;
- get discounted or zero set-up fees on certain mortgages;
- pay no standard valuation fees on several mortgage deals;
- be confident knowing that you have a dedicated mortgage adviser with you every step of the way.
Just a few reasons to call Contractor Mortgages® – today!
There are many potential and common pitfalls for contractors looking to remortgage. We help you avoid them all, without you having to fork out thousands for the privilege.
Our priority is to secure you the most competitive remortgage on the market. As independent specialist mortgage brokers, we can.
Contractor Mortgages® is not tied into any one mortgage lender or group. Our knowledge of the best remortgages out there for contractors is second to none. That’s how we’ll know the instant you call us which lender is right for your circumstances.
Above and beyond all those benefits for you, our service also includes:
- favourable underwriting terms for limited company contractors (and freelancers);
- a saving of up to £500 with our low broker fee;
- choices of remortgage deals from the whole of the market, not just one or two lenders;
- affordable mortgage protection & critical illness policies, tailored to your new mortgage loan;
- an impressive 3-5 week turnaround, from application to completion.
Our lenders now cater for a vast array of trading structures. Whether you’re self employed, a partner or an umbrella contractor, we can help.
There are many good reasons to remortgage your home. Debt consolidation, home repairs and improvements or just because you want a better rate.
Don’t let High Street lenders tell you that you can’t afford to. We know you can and, using your contract, you’ll get a competitive rate, too.
