Invest for your future with buy to let
Buy to let purchases are soaring with investors looking to take advantage of rising rental demand as first time buyers struggle to get a foothold onto the housing market. Our Contractor mortgage department has been inundated with calls in the past month from clients eager to make the most of the upturn.
The press has been full of stories about the future of the Landlord sector and on current trends we predict that home rentals could account for a massive 15-20% of the entire housing market by 2020. Current conditions represent a great opportunity for those savvy Contractors who can purchase now as a long term investment.
Many Contractors choose to build a property portfolio in order to supplement their current and future income, perhaps providing a cushion in the event of suffering a lower contract rate or time between contracts. Others clients have gone on to build very substantial portfolios numbering 30+ properties and have given up contracting altogether whilst another type of investor has simply looked on their buy to let as a home for long term savings to help fund future retirement alongside a more traditional pension plan.
Buy to Let mortgages for Contractors
Funding an investment property purchase is different to our home owner contractor mortgages because affordability is calculated on the rent that a likely tenant will pay rather than just you, the borrowers, income. Typically, the rent needs to account for 125% of the monthly mortgage repayment on the property so choosing a property wisely is the best way to ensure your application is successful. A good location, reasonable purchase price and high local demand should all equal a healthy rental ‘yield’ over and above the mortgage payment. The fact that the income proof required for a buy to let mortgage is calculated in this way will mean that your contract income will have less of an impact on your application but your day job will still need to be represented in as good a light as possible and this is where we bring our expertise to bear.
High street lenders have long been accused of being out of touch with the contracting sector and often continue to offer traditional “thanks but no thanks” responses to contractor mortgage applications when you apply direct. However, ContractorFinancials have worked tirelessly to gain access to a range of products from these same lenders, which are individually tailored to the particular requirements of those working in the contracting sector.
Our Service
Our qualified mortgage advisers here at ContractorMoney, specialise in offering High Street mortgages to contracting professionals. We also charge you none of the usual fees for our advice which will typically save you between £500 and 1% of the purchase price.
“There has been a recent increase in demand for buy to let mortgages, from Freelancers” says adviser Lisa Merriman. “With a 25% deposit, contractors can secure very competitive rates of around 3.5% on a 2 year tracker mortgage and some lenders even offer up to £500 cash back to clients on completion”.
“Even if you have a larger deposit, using a mortgage can be a great way of reducing the tax liability on rental income received as opposed to buying outright or putting down more cash. It also means that you won’t be committing all of your savings.” She adds. “Various costs can be offset against profits and income and we will be on hand to help along the way.. We appreciate that contractors are incredibly busy people and may not have time to meet in person. We can offer support through phone and email which saves our client’s valuable time and means that you can get cracking with your offer on the property without a delay that could allow another buyer into the frame.”
To talk to Lisa or one of our other qualified mortgage advisers about how a buy to let mortgage may benefit you, call 0845 066 8888 or fill out a contact form on this website.