Being priced out of the market, even for the most diminutive of properties, is a story we often hear from contractors. Despair not! Shared ownership mortgages could be the answer to your problem.
Finances work differently for contractors, even more so for those looking to get their feet on the property ladder. The gloss can soon be taken off having saved enough for a deposit in the traditional manner, only to be told you don’t qualify for a mortgage.
The problem lies in the fact that mortgage lenders, those on the front desk at least, aren’t up to speed with how contracting works. When the media suggest that the average age of first time buyers is now 30+, you even begin to doubt your money will be good enough when you’re forty.
Shared ownership mortgages for contractors and freelancers
You’ve perhaps already seen the blank look on a mortgage adviser’s face when you’ve explained how you earn a living. With shared ownership being a relatively new product, that’s not going to improve much.
The chances are that even if you know how they work, a clerk on the High Street is going to appear even more lost with Shared Ownership than they were previously when appraising your standard contractor mortgage application.
Of the many ingenious ruses the last two governments have attempted to introduce to give the housing market a boost, Shared Ownership is possibly one of the most sustainable.
With higher loan-to-value mortgages and products like FirstBuy, the tendency is to value your foot on the property ladder more than paying a competitive interest rate. 95% mortgages are available, but you will pay the price for lending so much against the value of your home.
Shared Ownership mortgages place the emphasis on not owning such a large percentage. You buy a smaller share of the property, with any balance leased and usually at an incredibly competitive interest rate.
The ability to save more for a final payment presents contractors with a genuine opportunity to eventually move out of their parental home before mom and dad start drawing their pension.
The features of Shared Ownership
- Purchase 25%, 50% or a 75% share in your new home
- Low rents on the balance you don’t buy (typically 3%)
- Flexible ‘staircasing’ options available
- Shared equity scheme on some properties
- FREE SMS service to keep you updated on your application
- Instant decisions on your mortgage (in principle)
Why you should secure Shared Ownership through Contractor Mortgages®
Stereotypically, lenders prefer to offer shared ownership mortgages only to those in regular full-time employment. However, with our help, you could secure yourself a mortgage deal and in double-quick time.
Here’s a snapshot of benefits Contractor Mortgages® can secure for you today:
- Low broker administration fee, saving you up to £500
- We have access to the whole of the mortgage market
- We will fast track mortgage applications for those in need of quick completion
- We provide you with a personal account manager
- We are experts in sourcing shared ownership mortgages
We cater for all trading structures and payment mechanisms. Our clients range from self employed individuals & partnerships to contractors with their own limited companies.
In addition, we also help umbrella company workers, too. If you’re serious about landing your very first home, call us or request a call back. We’ll match you with a suitable lender offering the best Shared Ownership mortgage terms to suit your circumstances.
