Our Buyers Guide to Contractor Mortgages helps to explain the whole process surrounding buying a house when you are a contractor. The slide show is broken down into specific sections detailing; 1. Why Contractors find it difficult to get a mortgage with High St lenders 2. First time buyers 3. Remortgaging 4. Buy to let for Contractors 5. Help to Buy for Contractors 6. What Mortgages are available 7. How much a Contractor can borrow and 8. The overall mortgage process explained.
Blueberry Mortgages is a company that provides mortgage advice and helps clients find the right mortgage. They aim to make the process convenient for clients and put them first. Blueberry works with various lenders to offer clients choice and expertise in finding a suitable and competitive mortgage. The document outlines Blueberry's services and mortgage options, and explains the basic process a client would go through from getting a mortgage in principle to completion.
The document is a guide for financing a home that provides information on:
1) The process and team members involved in financing a home including the mortgage broker, realtor, lawyers, and home inspectors.
2) The types of mortgages including closed and open mortgages.
3) What is considered in a mortgage application including income, credit history, and required documents.
4) The differences between a conventional and high ratio mortgage.
5) Estimated closing costs such as property transfer tax, legal fees, and more.
6) Special financing programs such as purchasing with improvements or 0% down payment programs.
27 Ways To Buy Multi-Family Properties With NO MONEY DOWN by Dave LindahlDave Lindahl
This document provides 27 ways to purchase multi-family properties with no money down. Some of the key strategies mentioned include obtaining owner financing where the seller provides the financing instead of cash, borrowing from private lenders for a down payment, taking over properties "subject to" existing mortgages, partnering with equity investors who provide cash in exchange for a share of profits and cash flow, and requesting repair allowances at closing to cover needed repairs and provide funds for a down payment. The document encourages readers to refer to these various no money down techniques when evaluating potential property deals.
This document provides an overview of mortgage qualification guidelines in Canada, including income requirements, down payment amounts, equity sources, and debt service ratios (GDS and TDS). Key points:
- Common income sources considered include employment, self-employment, pensions, and child tax credits, provided they can demonstrate consistency.
- The minimum down payment is typically 5% but increases to 10% or 20% for homes over $500k or $1M. Larger down payments reduce mortgage costs.
- Equity can come from sources like selling another property, savings, RRSPs, gifts, or investments.
- GDS measures housing costs as a percentage of income and is typically capped at 32-35
This document provides information about obtaining a mortgage as a contractor. It discusses the types of mortgages available, including repayment and interest-only options. It also covers how much borrowers can typically get, the deposit needed, and fees involved in the mortgage process. Additionally, it addresses some of the hurdles contractors may face and how a specialist broker can help overcome them by presenting documentation correctly to secure appropriate financing.
Creative financing provides benefits for both buyers and sellers by increasing buyers' options to purchase homes. With home prices low and inventory decreasing, sellers are offering owner financing which allows buyers to obtain a loan directly from the seller rather than a bank. Terms like interest rates, down payments, and length of the loan can be negotiated between the buyer and seller to structure an arrangement that works for both parties.
Lenders are often reluctant to approve short sales for reasons that are not apparent to borrowers. Just as an iceberg has a large underwater portion not visible above the surface, lenders have internal factors influencing their decisions. These include not owning the mortgage themselves but acting as servicers, having to follow investor guidelines, and the potential for mortgage insurance payouts that exceed short sale profits. As a result, lenders' behaviors can seem unpredictable and inconsistent to borrowers who do not see these behind-the-scenes complexities.
Within the Dodd-Frank Wall Street Reform Act the CFPB was instructed to take the four disclosure forms received by Consumers when financing a home and combine them into one form in order to achieve better understanding and transparency.
The CFPB’s goals were to help Consumers avoid costly surprises at the closing table; allow them to achieve easier comparisons of the estimated and final loan terms and fees; give them more time to consider choices and to put limits on closing cost increases. The CFPB had to take various existing Acts, including RESPA and TILA, then reconcile differing timing requirements in order to create one disclosure form that would replace the
1) Early TILA
2) GFE
3) Late TILA
4) HUD1 Settlement Statement.
One thousand, eight hundred and eighty eight (1,888) pages later we had the final rule on 11/20/2013.
Blueberry Mortgages is a company that provides mortgage advice and helps clients find the right mortgage. They aim to make the process convenient for clients and put them first. Blueberry works with various lenders to offer clients choice and expertise in finding a suitable and competitive mortgage. The document outlines Blueberry's services and mortgage options, and explains the basic process a client would go through from getting a mortgage in principle to completion.
The document is a guide for financing a home that provides information on:
1) The process and team members involved in financing a home including the mortgage broker, realtor, lawyers, and home inspectors.
2) The types of mortgages including closed and open mortgages.
3) What is considered in a mortgage application including income, credit history, and required documents.
4) The differences between a conventional and high ratio mortgage.
5) Estimated closing costs such as property transfer tax, legal fees, and more.
6) Special financing programs such as purchasing with improvements or 0% down payment programs.
27 Ways To Buy Multi-Family Properties With NO MONEY DOWN by Dave LindahlDave Lindahl
This document provides 27 ways to purchase multi-family properties with no money down. Some of the key strategies mentioned include obtaining owner financing where the seller provides the financing instead of cash, borrowing from private lenders for a down payment, taking over properties "subject to" existing mortgages, partnering with equity investors who provide cash in exchange for a share of profits and cash flow, and requesting repair allowances at closing to cover needed repairs and provide funds for a down payment. The document encourages readers to refer to these various no money down techniques when evaluating potential property deals.
This document provides an overview of mortgage qualification guidelines in Canada, including income requirements, down payment amounts, equity sources, and debt service ratios (GDS and TDS). Key points:
- Common income sources considered include employment, self-employment, pensions, and child tax credits, provided they can demonstrate consistency.
- The minimum down payment is typically 5% but increases to 10% or 20% for homes over $500k or $1M. Larger down payments reduce mortgage costs.
- Equity can come from sources like selling another property, savings, RRSPs, gifts, or investments.
- GDS measures housing costs as a percentage of income and is typically capped at 32-35
This document provides information about obtaining a mortgage as a contractor. It discusses the types of mortgages available, including repayment and interest-only options. It also covers how much borrowers can typically get, the deposit needed, and fees involved in the mortgage process. Additionally, it addresses some of the hurdles contractors may face and how a specialist broker can help overcome them by presenting documentation correctly to secure appropriate financing.
Creative financing provides benefits for both buyers and sellers by increasing buyers' options to purchase homes. With home prices low and inventory decreasing, sellers are offering owner financing which allows buyers to obtain a loan directly from the seller rather than a bank. Terms like interest rates, down payments, and length of the loan can be negotiated between the buyer and seller to structure an arrangement that works for both parties.
Lenders are often reluctant to approve short sales for reasons that are not apparent to borrowers. Just as an iceberg has a large underwater portion not visible above the surface, lenders have internal factors influencing their decisions. These include not owning the mortgage themselves but acting as servicers, having to follow investor guidelines, and the potential for mortgage insurance payouts that exceed short sale profits. As a result, lenders' behaviors can seem unpredictable and inconsistent to borrowers who do not see these behind-the-scenes complexities.
Within the Dodd-Frank Wall Street Reform Act the CFPB was instructed to take the four disclosure forms received by Consumers when financing a home and combine them into one form in order to achieve better understanding and transparency.
The CFPB’s goals were to help Consumers avoid costly surprises at the closing table; allow them to achieve easier comparisons of the estimated and final loan terms and fees; give them more time to consider choices and to put limits on closing cost increases. The CFPB had to take various existing Acts, including RESPA and TILA, then reconcile differing timing requirements in order to create one disclosure form that would replace the
1) Early TILA
2) GFE
3) Late TILA
4) HUD1 Settlement Statement.
One thousand, eight hundred and eighty eight (1,888) pages later we had the final rule on 11/20/2013.
THE ULTIMATE GUIDE TO BUYING & SELLING A HOME IN THE GREATER TORONTO AREAJusto Inc.
Welcome! For most people, buying or selling a home is the biggest financial transaction of their lives. Whether it’s your first time or not, the information in this ebook will help you make more educated decisions, avoid common mistakes, and could even help you save a great deal of money! Find out more at https://justo.ca/
Cash Flow Gold offers a rent-to-own solution for clients who have been declined financing. Brokers can refer declined clients to the program and earn fees without much paperwork. The rent-to-own program allows clients to rent a home with an option to purchase it after 2 years, with 20% of rent payments credited towards the down payment. To qualify, clients must have sufficient income to cover rent and have a minimum 5% security deposit. Brokers should submit client files including application, credit report, income documentation, and notice of assessment for review.
This document provides information and advice for first-time home buyers regarding getting a home loan. It discusses the benefits of using a mortgage broker who can help find the right loan, negotiate terms, and make the application process easier. The document also covers important factors to consider like saving for a deposit, estimated borrowing potential, additional costs, different loan types, and options for assistance like family loans or first home owner grants. Overall, it aims to give first home buyers a better understanding of the home loan process and how to make a well-informed decision.
This document discusses representing clients in short sales and the obstacles that may arise. It provides information on:
1) Common reasons homeowners face financial hardship and need to pursue a short sale, such as job loss, interest rate adjustments, or overstating income.
2) The role of real estate agents in counseling clients, communicating with lenders, creating net sheets and short sale packages to secure lender approval.
3) Contents of a short sale package including hardship letters, CMAs, income documentation, and the disclosure process.
4) Contract procedures and addendums when making an offer on a short sale contingent on lender approval.
The Cherry Hill Group is a real estate investment company seeking to purchase commercial properties, particularly self-storage facilities, to generate long-term income. They raise funds from private investors to purchase underperforming properties, which they renovate and improve management to increase profits. They aim to hold properties for 5 years before refinancing and paying back initial investors, offering competitive interest rates to investors.
This document provides information to guide home buyers through the home buying process. It discusses choosing a real estate agent, the step-by-step process of making an offer and purchasing a home, choosing a lender, the loan process, points, how underwriters evaluate loans, tips for completing a loan application, estimating how much home buyers can afford, estimating mortgage payments, escrow, title insurance, and other related topics. The guide aims to inform home buyers of the various considerations and stages involved in the home buying journey.
Real estate attorney shares 5 points for consideration when it comes to short...morenews222
Home owners who find themselves upside down in their home have several choices to make when confronted with a home value that is substantially less than their mortgage.
This document provides an overview of the home buying process, including determining affordability and readiness, shopping for a home and loan, and the closing process. Key points covered include:
- Factors to consider in determining if you are ready to buy a home and what price range is affordable based on income and expenses.
- Roles of real estate agents, attorneys, and lenders in the home buying process.
- Important terms to consider in a sales agreement such as the mortgage clause, settlement costs, and inspections.
- Steps for shopping for a loan including different loan types and programs, the Good Faith Estimate, and settlement services.
- Details on closing including the HUD-
In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor.
This document provides 15 tips for saving money in different areas, including on insurance, auto loans, mortgages, credit cards, gasoline, and more. It discusses negotiating lower insurance rates, refinancing loans to reduce payments, choosing rewards credit cards strategically, paying credit card balances in full each month to avoid interest, and driving habits like regular tune-ups and slower speeds to improve gas mileage. The tips emphasize comparing options, maintaining vehicles, paying on time, and avoiding unnecessary expenses and interest charges to maximize savings.
The document summarizes common mistakes made by first-time home buyers and tips to avoid them. The top 5 mistakes are: 1) Not asking their lender enough questions to get the best mortgage deal. 2) Not making a quick decision, allowing other buyers to purchase the home first. 3) Not finding the right real estate agent to guide them through the process. 4) Not making their offer appealing to sellers. 5) Not considering resale value when choosing a home since first-time buyers typically stay in a home for only 4 years.
This document provides tips for first-time home buyers in New Zealand. It recommends that now is a good time to buy a house given historically low interest rates and a more stable housing market. It offers advice on getting approved for a home loan, such as maintaining good credit, saving for a deposit, and keeping debts low. It also suggests steps for properly checking a prospective property, like getting a LIM report and building inspection. Finally, it outlines various costs associated with the home buying process, such as LIM reports, inspections, and conveyancing fees.
This document summarizes the mortgage services offered by Invis, one of Canada's largest mortgage brokerage firms, and how partnering with them can benefit realtors and their clients. Key points include:
- Invis has over 800 mortgage consultants across Canada who can arrange financing and get the best rates and terms from over 50 lenders.
- Partnering with Invis gives realtors and their clients access to more options and stronger negotiating power to get approved for higher mortgages and potentially save thousands.
- Invis' services are tailored for realtors and include helping avoid deals falling through, financing for challenging situations, and actively participating in realtors' success through various programs.
This document provides an overview of the home buying process. It discusses determining readiness and affordability, shopping for a home and loan, the roles of real estate agents and attorneys, important terms in sales agreements, and required inspections. Key steps include assessing finances and monthly budget, getting pre-approved for a loan amount, finding an agent to represent your interests, reviewing the sales agreement terms carefully, and arranging inspections for issues like pests or lead-based paint in older homes. Taking time on these initial stages helps ensure finding the right home and loan within one's means.
The Art of Homeownership – E Learning Platform 12 Disruptive Questions to Ask on The Initial Call
The purpose of these questions is to get the consumer to realize that there is a lot that they don’t know or haven’t thought about. Once they realize that, you regain control of the conversation and can focus on education, guidance and advice, as opposed to just talking about rate and cost.
Mortgage Coach Annual Mortgage Review Handbook from 2006Mortgage Coach
The document discusses services that mortgage planners can provide clients to create lifetime relationships. It outlines five key services:
1) The Personalized Mortgage Plan is the foundational service that empowers clients to make solid financial decisions by understanding total costs and aligning their mortgage with long-term goals.
2) The RateWatch Report is a monthly service that helps clients track interest rates and compare their current mortgage to market options, advising on strategies to achieve financial goals faster.
3) The Quarterly Credit Review helps clients understand their credit score and factors that can improve their financial situation.
4) The Annual Equity Review reviews client progress toward goals, evaluates liabilities to ensure the most beneficial
A short sale occurs when a home is sold for less than the amount owed on the mortgage to avoid foreclosure. Through a short sale, the lender agrees to forgive the remaining debt and the homeowner avoids the negative consequences of foreclosure like damage to their credit. The process involves negotiating with lenders to accept a lower sale price, assembling financial documents, and coordinating the sale between buyers and lenders.
This document provides information about the home buying process, including the typical steps involved and common questions homeowners may have. The 10 steps outlined are: researching the area, calculating an affordable budget, getting pre-approval, making an offer, starting paperwork like reviewing contracts, organizing insurance, arranging inspections, exchanging contracts, considering a cooling-off period, and completing settlement. It also answers frequently asked questions and provides a glossary to explain common real estate terms. The overall guide aims to help potential homeowners understand what is involved in purchasing a property.
RE/MAX Results complete buyers guide. Whether you are a first time home buyer or a seasoned veteran in home purchasing...this guide will give you a complete through understanding of the home buying process. If you are in the Greater Kansas City area and are remotely interested in Real Estate...this is a must have!
THE ULTIMATE GUIDE TO BUYING & SELLING A HOME IN THE GREATER TORONTO AREAJusto Inc.
Welcome! For most people, buying or selling a home is the biggest financial transaction of their lives. Whether it’s your first time or not, the information in this ebook will help you make more educated decisions, avoid common mistakes, and could even help you save a great deal of money! Find out more at https://justo.ca/
Cash Flow Gold offers a rent-to-own solution for clients who have been declined financing. Brokers can refer declined clients to the program and earn fees without much paperwork. The rent-to-own program allows clients to rent a home with an option to purchase it after 2 years, with 20% of rent payments credited towards the down payment. To qualify, clients must have sufficient income to cover rent and have a minimum 5% security deposit. Brokers should submit client files including application, credit report, income documentation, and notice of assessment for review.
This document provides information and advice for first-time home buyers regarding getting a home loan. It discusses the benefits of using a mortgage broker who can help find the right loan, negotiate terms, and make the application process easier. The document also covers important factors to consider like saving for a deposit, estimated borrowing potential, additional costs, different loan types, and options for assistance like family loans or first home owner grants. Overall, it aims to give first home buyers a better understanding of the home loan process and how to make a well-informed decision.
This document discusses representing clients in short sales and the obstacles that may arise. It provides information on:
1) Common reasons homeowners face financial hardship and need to pursue a short sale, such as job loss, interest rate adjustments, or overstating income.
2) The role of real estate agents in counseling clients, communicating with lenders, creating net sheets and short sale packages to secure lender approval.
3) Contents of a short sale package including hardship letters, CMAs, income documentation, and the disclosure process.
4) Contract procedures and addendums when making an offer on a short sale contingent on lender approval.
The Cherry Hill Group is a real estate investment company seeking to purchase commercial properties, particularly self-storage facilities, to generate long-term income. They raise funds from private investors to purchase underperforming properties, which they renovate and improve management to increase profits. They aim to hold properties for 5 years before refinancing and paying back initial investors, offering competitive interest rates to investors.
This document provides information to guide home buyers through the home buying process. It discusses choosing a real estate agent, the step-by-step process of making an offer and purchasing a home, choosing a lender, the loan process, points, how underwriters evaluate loans, tips for completing a loan application, estimating how much home buyers can afford, estimating mortgage payments, escrow, title insurance, and other related topics. The guide aims to inform home buyers of the various considerations and stages involved in the home buying journey.
Real estate attorney shares 5 points for consideration when it comes to short...morenews222
Home owners who find themselves upside down in their home have several choices to make when confronted with a home value that is substantially less than their mortgage.
This document provides an overview of the home buying process, including determining affordability and readiness, shopping for a home and loan, and the closing process. Key points covered include:
- Factors to consider in determining if you are ready to buy a home and what price range is affordable based on income and expenses.
- Roles of real estate agents, attorneys, and lenders in the home buying process.
- Important terms to consider in a sales agreement such as the mortgage clause, settlement costs, and inspections.
- Steps for shopping for a loan including different loan types and programs, the Good Faith Estimate, and settlement services.
- Details on closing including the HUD-
In real estate, a short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor.
This document provides 15 tips for saving money in different areas, including on insurance, auto loans, mortgages, credit cards, gasoline, and more. It discusses negotiating lower insurance rates, refinancing loans to reduce payments, choosing rewards credit cards strategically, paying credit card balances in full each month to avoid interest, and driving habits like regular tune-ups and slower speeds to improve gas mileage. The tips emphasize comparing options, maintaining vehicles, paying on time, and avoiding unnecessary expenses and interest charges to maximize savings.
The document summarizes common mistakes made by first-time home buyers and tips to avoid them. The top 5 mistakes are: 1) Not asking their lender enough questions to get the best mortgage deal. 2) Not making a quick decision, allowing other buyers to purchase the home first. 3) Not finding the right real estate agent to guide them through the process. 4) Not making their offer appealing to sellers. 5) Not considering resale value when choosing a home since first-time buyers typically stay in a home for only 4 years.
This document provides tips for first-time home buyers in New Zealand. It recommends that now is a good time to buy a house given historically low interest rates and a more stable housing market. It offers advice on getting approved for a home loan, such as maintaining good credit, saving for a deposit, and keeping debts low. It also suggests steps for properly checking a prospective property, like getting a LIM report and building inspection. Finally, it outlines various costs associated with the home buying process, such as LIM reports, inspections, and conveyancing fees.
This document summarizes the mortgage services offered by Invis, one of Canada's largest mortgage brokerage firms, and how partnering with them can benefit realtors and their clients. Key points include:
- Invis has over 800 mortgage consultants across Canada who can arrange financing and get the best rates and terms from over 50 lenders.
- Partnering with Invis gives realtors and their clients access to more options and stronger negotiating power to get approved for higher mortgages and potentially save thousands.
- Invis' services are tailored for realtors and include helping avoid deals falling through, financing for challenging situations, and actively participating in realtors' success through various programs.
This document provides an overview of the home buying process. It discusses determining readiness and affordability, shopping for a home and loan, the roles of real estate agents and attorneys, important terms in sales agreements, and required inspections. Key steps include assessing finances and monthly budget, getting pre-approved for a loan amount, finding an agent to represent your interests, reviewing the sales agreement terms carefully, and arranging inspections for issues like pests or lead-based paint in older homes. Taking time on these initial stages helps ensure finding the right home and loan within one's means.
The Art of Homeownership – E Learning Platform 12 Disruptive Questions to Ask on The Initial Call
The purpose of these questions is to get the consumer to realize that there is a lot that they don’t know or haven’t thought about. Once they realize that, you regain control of the conversation and can focus on education, guidance and advice, as opposed to just talking about rate and cost.
Mortgage Coach Annual Mortgage Review Handbook from 2006Mortgage Coach
The document discusses services that mortgage planners can provide clients to create lifetime relationships. It outlines five key services:
1) The Personalized Mortgage Plan is the foundational service that empowers clients to make solid financial decisions by understanding total costs and aligning their mortgage with long-term goals.
2) The RateWatch Report is a monthly service that helps clients track interest rates and compare their current mortgage to market options, advising on strategies to achieve financial goals faster.
3) The Quarterly Credit Review helps clients understand their credit score and factors that can improve their financial situation.
4) The Annual Equity Review reviews client progress toward goals, evaluates liabilities to ensure the most beneficial
A short sale occurs when a home is sold for less than the amount owed on the mortgage to avoid foreclosure. Through a short sale, the lender agrees to forgive the remaining debt and the homeowner avoids the negative consequences of foreclosure like damage to their credit. The process involves negotiating with lenders to accept a lower sale price, assembling financial documents, and coordinating the sale between buyers and lenders.
This document provides information about the home buying process, including the typical steps involved and common questions homeowners may have. The 10 steps outlined are: researching the area, calculating an affordable budget, getting pre-approval, making an offer, starting paperwork like reviewing contracts, organizing insurance, arranging inspections, exchanging contracts, considering a cooling-off period, and completing settlement. It also answers frequently asked questions and provides a glossary to explain common real estate terms. The overall guide aims to help potential homeowners understand what is involved in purchasing a property.
RE/MAX Results complete buyers guide. Whether you are a first time home buyer or a seasoned veteran in home purchasing...this guide will give you a complete through understanding of the home buying process. If you are in the Greater Kansas City area and are remotely interested in Real Estate...this is a must have!
This document provides information about mortgages from deVere Mortgages. It discusses mortgages for UK residents and expatriates, including residential mortgages, buy-to-let mortgages, and considerations for international mortgages. The document recommends seeking expert mortgage advice to find the best solution suited to an individual's needs and circumstances.
This document provides information about mortgages from deVere Mortgages. It discusses mortgages for UK residents and expatriates, factors to consider for a new home budget, reasons for international mortgages, and services provided by deVere such as foreign currency exchange and insurance. The document aims to help readers find the best mortgage solutions tailored to their needs and circumstances.
This document provides information about mortgages from deVere Mortgages. It discusses mortgages for UK residents and expatriates, including residential mortgages, buy-to-let mortgages, and considerations for international mortgages. The document recommends seeking expert mortgage advice to find the best solution suited to individual needs and circumstances.
Title365 is a nationwide provider of title insurance and escrow services. It has local offices throughout California and key cities nationwide. Title365 uses centralized and efficient operations to provide faster closing services for residential real estate transactions. It offers traditional title insurance, escrow, and technology solutions to brokers, lenders, and buyers and sellers of real estate. Title365 also offers flexibility in title insurance underwriters through its relationships with major underwriters. Its online platform connects buyers, sellers, and professionals to facilitate ordering and tracking of real estate services.
This document provides an overview of the home buying process from Irfan Nazir, Senior Vice President at Pac West Home Loans. It covers key topics like:
- Understanding the loan process and commonly asked questions.
- Factors to consider when shopping for interest rates like lock periods and fees.
- Important elements of a purchase contract like contingencies, inspections, and seller contributions.
- How long the buyer plans to keep the loan impacts decisions around paying points and loan programs.
- The importance of good credit and maintaining scores during the loan process.
- Defining junk fees and the lender's obligation to disclose fees.
The handout is intended to educate home
The document provides an overview of the mortgage industry. It discusses what a mortgage is, the factors and people involved in the mortgage process such as credit reports, mortgage brokers, lenders, and down payments. It also outlines different types of mortgages including adjustable-rate, fixed-rate, and reverse mortgages. Refinancing options are explained as ways for homeowners to potentially lower their interest rates or monthly payments. Eligibility and loan limits for reverse mortgages are also summarized. The document aims to explain the key concepts and participants in the US mortgage market.
Loanseeker is Australia's Leading Online Mortgage Broker. With a fully stocked Resource Centre to help everyone become a property investing guru. visit http://Loanseeker.com.au for more info.
Peer-to-Peer Lending is Growing in Popularity with InvestorsDean Graziosi
Whenever a concept is catching on, there will be a lot of Internet chatter about it. There are quite a few articles on financial and investing sites these days about peer-to-peer lending. It’s a good thing, as investors are constantly searching for affordable funding sources for their projects, particularly fix & flip deals.
The document provides a summary of common mistakes made by first-time home buyers and tips to avoid them. The top 5 mistakes are: 1) Not asking their lender enough questions to get the best mortgage deal. 2) Not making a quick buying decision and losing out to other offers. 3) Not finding the right real estate agent to guide them through the process. 4) Not making their offer appealing to sellers. 5) Not considering how long they plan to stay in the home and the costs of eventual resale. The document stresses the importance of working with knowledgeable professionals and doing thorough research to avoid costly errors when purchasing a first home.
This document is a guide to help clients through the home buying process. It discusses gathering documents like pay stubs, tax returns, and credit reports to understand affordability. It also covers getting pre-approved with a lender to learn financing options like fixed or adjustable rate mortgages. The guide emphasizes understanding interest rates, fees, and working with realtors or brokers to find the right home and loan.
Condo living has seen significant growth in the past few years. Tons of people are flocking to freshly constructed condos and are snapping up pre-construction units faster than they’re being built. Condo buildings provide essential amenities to residents such as underground parking, gyms, pools, spas, and even some might have grocery stores and banks on their first floor for convenience. Maybe that is why more and more people prefer to live in condos.
Get more information about business mortgagesYiloDoctor
The document discusses the advantages and disadvantages of business mortgages. It outlines some key benefits such as fully owning the property/asset and interest payments being tax deductible. However, it also notes disadvantages like the lender having a legal right to the asset if payments are missed and loans possibly becoming invalid if agreements are breached. The document emphasizes considering both pros and cons, as well as working with brokers to find the best mortgage deals.
Everything you need to know about purchasing a home, whether you are a first time home buyer or a repeat buyer - this is a great place to start. Then contact me at lisat@mortgagebrokersottawa.com to get started on your preapproved mortgage...
The document provides an overview of the home buying process and discusses important considerations for obtaining a home mortgage loan. It includes tips on working with a lender and real estate agent, evaluating different loan options, negotiating terms, and becoming educated on the process. Key recommendations are to get pre-approved for a loan, look at multiple loan programs, demand good service, and don't be afraid to negotiate flexible terms. Being informed is important to getting the best mortgage.
Reprinted from REALTOR® Magazine(RealtorMag.Realtor.org) with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Copyright 2008. All rights reserved.
This document provides an overview of commercial real estate transactions and strategies for facility managers. It discusses the types of commercial real estate transactions including purchase/sale, lease, sublease, and build to suit. It also outlines seven habits of highly effective brokers, including starting early, assembling an all-star team, deciding on the best transaction type, having multiple options, crafting a winning RFP, negotiating effectively, and managing the lease. The document provides tips on selecting brokers, attorneys, appraisers and other professionals and negotiating the best deal.
Similar to Buyers Guide To Contractor Mortgages (20)
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Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
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1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
2. A Buyer’s Guide to Contractor Mortgages
Fourteen years ago Contractor Money’s founder, Tony Harris, realised
first hand how difficult it was to obtain a mortgage as a Contractor
whilst working as the IFA for a Contractor Accountancy practice.
Tony decided to make it his business to do something about it,
so he started Contractor Money, now the UK’s largest Contractor
Mortgage Specialist, and set about changing the Lenders’ attitudes
to Contractors. He began negotiating contract based mortgage
schemes with some of the biggest banks and building societies on
the high street, and the Contractor Mortgage Industry was born.
Our Contractor Mortgages buyer’s guide is designed to help you buy
your new home or buy to let investment as quickly and smoothly as
possible, by giving you the information you need to avoid the pitfalls of applying for a mortgage as
a contractor. Instead you can take advantage of the wealth of knowledge we have as Contractor
Mortgage specialists by reading this guide.
A Buyer’s Guide to Contractor Mortgages
2
3. Contents Page
1
Why do Contractors get Refused a Mortgage on the High Street? ......................................4
2
I’m a Contractor AND a First Time Buyer ............................................................................ 6
3
I’m Ready to Move up the Property Ladder ........................................................................ 7
4
Re-mortgaging for a Better Deal .........................................................................................
8
5
Buy to Let Mortgages for Investment .................................................................................
9
6
What is the “Help to Buy” Scheme? ................................................................................... 11
7
What Types of Mortgages are Available? ........................................................................... 14
8
How Much can you Borrow? .............................................................................................
17
9
The Mortgage Process Explained ......................................................................................
18
10
Why Choose Contractor Money? ....................................................................................... 19
11
Need Some Help with your Mortgage? Our Experts are on Hand Now ............................. 21
A Buyer’s Guide to Contractor Mortgages
3
4. 1
Why do Contractors get Refused a
Mortgage on the High Street?
Traditional lenders (i.e. the high street banks and building
societies) are often wary of the perceived short-term
nature of contract work and even if they were prepared
to lend to you, most would use salary alone to determine
your maximum mortgage value. They don’t take into
account those all important dividends that normally
represent a significant proportion of a Contractor’s total
income.
Ironically, many underwriters in the central mortgage processing units of these institutions now
have sufficient understanding of the contracting world to be happy lending to Contractors, but
these mortgage applications rarely make it past the branch or call centre staff.
Gaps in their training as well as computer based credit scoring systems mean that they are
unfamiliar with, and not prepared for, the Contractor scenario. Contractors tend to fall outside of
their ‘standard script’ when it comes to proof of employment, proof of income and time employed,
thus resulting in many mortgage applications being refused before they have even been seen by
an underwriter.
So, Can I get a mortgage as a contractor?
The answer to this question is most definitely “yes”. Thankfully the days when self-employed
contractors had to present three years of accounts, or go down the expensive self-certification
route to determine what they could afford to borrow, are long gone. Nowadays, there are
Contractor-friendly lenders who will base mortgage size on multiples of your annualised contract
rate.
As a contractor you will need the help of a specialist Contractor Mortgage Broker to access the
same mortgage options and competitive rates available to salaried employees. When a specialist
broker or Financial Adviser acts as the intermediary between you and the lender, you can cut out
the high street branches or call centres that cause the problems.
Why do Contractors Get Refused a Mortgage on the High Street?
4
5. A specialist broker will also influence the way that your application is presented to the underwriter
and in some cases the particular underwriter that your application is presented to.
By putting your mortgage in front of the right people, a specialist broker can ensure the success
of your mortgage application by presenting your case in the correct manner, and avoiding the
need for providing irrelevant HMRC documents.
Why do Contractors Get Refused a Mortgage on the High Street?
5
6. 2
I’m a Contractor AND a First Time Buyer.
As a first time buyer you may be put off by the
miscon ception that getting a mortgage as a Contractor
can be difficult. Don’t be. The expert advice provided by
a speci alist broker, which is specifically tailored to you
as a Contractor and a first time buyer, makes the whole
proces s very easy.
Before you start the process of buying your first home,
you should work out what your total monthly expenses
are, to ensure you can afford the mortgage before
committing to the repayments.
With the help of a Contractor mortgage service you can also get onto the property ladder at a
competitive rate, which will help to keep your repayments at an affordable level.
How much can I borrow as a First Time Buyer?
Specially negotiated contract-based underwriting means that your eligibility is assessed based on
your contract rate alone. This often allows you to borrow more than your permanent colleagues,
which can be up to five times your annualised contract rate with some lenders. Your specialist
adviser will ensure you keep within a comfortable borrowing limit though, so you don’t overstretch
yourself at this early stage.
I’m a Contractor AND a First Time Buyer.
6
7. 3
I’m Ready to Move up the Property Ladder.
If you’re a contractor and you own your current home,
then chances are you bought it when you were still
employed. With a permanent job and a fixed income,
getting a mortgage back then was not a problem.
Since then, your life has moved on and as you are now
earning much more as a Contractor, you’ve decided it’s
time to take the next step up the ladder. Excited, you
contact your local bank to get your mortgage application
underway, only to hit a brick wall!
All of a sudden, the very same bank that provided you with a mortgage for your current house,
doesn’t want to know. All because you’re no longer employed and can’t prove your earnings with
6 months worth of payslips.
Frustrated, you’ve all but abandoned your plans for moving to that new home but there’s no need
to do that. With the help of a specialist Contractor mortgage adviser, you could get a mortgage
offer in principle within 48 hours and borrow up to 5x your annual contract income, all without
having to prove your income with 3 years of accounts.
In the first section of this guide (see ‘Why do Contractors get refused a mortgage on the high
street”) we explain exactly why you’re hitting that brick wall as a Contractor and how you can
easily get over that brick wall with the help of a specialist Contractor mortgage broker.
I’m Ready to Move up the Property Ladder.
7
8. 4
Re-mortgaging for a Better Deal.
Once you have your mortgage and are settled in your home, a specialist contractor mortgage
adviser can help you to keep on top of the bewildering array of mortgage options when the time
comes to re-mortgage.
Most Contractor mortgage specialists will email you within 2 months of the expiry of your current
fixed/discounted rate scheme with a ‘no obligation’ recommendation on a competitive new deal.
They will look at what’s offered by your present lender first and then compare this with the wider
mortgage market to ensure you get a good rate.
Should your broker find a better deal with a lender other than your current provider they will aim to
ensure that the new lender pays towards any re-mortgage costs wherever possible.
Re-mortgaging to Release Capital
At the same time as aiming to save you money on your monthly mortgage payments, you may
also want to take advantage of any increase in the value of your home to raise capital. This could
help fund consolidation of expensive debts to further reduce monthly outgoings or provide monies
for investment, business ventures or a deposit on a rental property/second home.
Re-mortgaging for a Better Deal.
8
9. 5
Buy to Let Mortgages for Investment.
After shrugging off the credit crunch in 2008/9, ‘Buy to
Let’ investment has continued to grow in popularity. It
has proved to be a particular favourite amongst the UK’s
Contractor community with many Contractors investing
aggressively, building from an initial purchase to a whole
portfolio of properties.
With rental demand higher than ever and attractive
yields on offer in many areas of the UK it is easy to
understand why Buy to Let is so popular.
Why Invest in Buy To Let?
•
Unlike other investments, buy to let easily allows you to ‘gear’ any initial funds
•
Rental yields represent additional current income and a potential future pension
•
Exploit high demand from tenants unable to buy
How do you Secure Competitive Buy to Let Mortgage Rates?
Buy to let mortgages are available to Contractors as long as you have a good deposit to invest.
For instance, if you have a deposit of 25% or more then you can expect to gain access to some
very competitive mortgage rates, and your specialist mortgage broker will be able to show any
lender that your employment status is academic as long as the rental income is sufficient to cover
a margin above the mortgage repayments.
With this in mind our advice is to do your homework and choose the right property that has a
good rent yield.
Buy to Let Mortgages for Investment.
9
10. 3 Things to Consider when Buying a ‘Buy to Let’ Property.
1. Think about who you will be renting to.
When deciding where and what to buy, you should consider the type of people that will be renting
in your chosen area. For instance, if you are hoping to rent to students then you will want to
choose a house that lends itself to multiple occupancy and is close to the university and nightlife.
Likewise, if you are hoping to rent to families with young children, then you will want to choose
a larger house that is close to schools, parks and includes features such as a dishwasher and
parking.
2. Too Busy to Find the Right Property? Let your Mortgage Specialist do the Searching
For You.
Some Contractor Mortgage specialists offer a property acquisition service which is available
to busy contractors who are looking to invest in Buy to Let but don’t have the time to search
for properties themselves. Expert buying agents will not only find the right property to suit the
rental market in your chosen area but will also handle the negotiations with the estate agents
on your behalf. By using both a Contractor mortgage service and Contractor Home Search, the
entire process of finding and purchasing your investment property will be completed quickly and
efficiently, with the minimum involvement from you.
3. Have a Contingency Fund.
As it is the landlord’s responsibility to rectify problems with the property, such as a broken boiler,
it is important to have a contingency fund saved so that you can cover any unexpected costs
that may arise. It is also essential that you have a comprehensive landlord insurance policy in
place to protect yourself against major structural damage or loss of rent if a tenant defaults and
we can help source a competitive scheme that fits your needs. If you’re too busy to take on the
responsibility then you can employ a letting agent to manage the property for you, who will act as
a go between for you and your tenants for a percentage of your rent each month.
‘Let to Buy’
If you are struggling to sell your home in the current market as you don’t want to accept a low
offer, but are still keen to move, then let to buy could offer you a quick and hassle free solution.
By switching your current property on to a buy to let mortgage and then renting it out, you will be
able to release money for the deposit on your new property. The lender on your new property is
then able to ignore the buy to let mortgage as it’s deemed to be self-funding. They can then apply
the full income multiplier to your contract based income, therefore maximising your borrowing
potential.
Buy to Let Mortgages for Investment.
10
11. 6
What is the “Help to Buy” Scheme?
“Help to Buy” is a Government backed initi ative aimed
at making the first rung of the property ladd er or a
subsequent movement up it, more accessi ble for those
struggling to save suitable deposits The s cheme has
been introduced in two phases (phase 1 in
pril 2013
and phase 2 in October 2013, three months earlier than
originally planned). These phases now
sent the two
repre “Help to Buy” options potentially
or purchasing
available f a property up to the value of
£600,000.
1). Equity loan – available on new build pro perties
only, using a government equity loan of 20% of the purchase price towards the deposit plus a
traditional mortgage of 75% LTV so the buyer only needs a 5% deposit.
2). Mortgage guarantee – available for new and pre-owned properties on a standard mortgage of
up to 95% of the purchase price. The Guarantee is arranged behind the scenes by the mortgage
Lender and won’t require any involvement from the buyer who simply needs a 5% deposit to put
down. The guarantee will only come in to play if the homeowner defaults on their mortgage so
acts as a safety net for the Lender. It will also be available on re-mortgages in the future so those
homeowners that are on a lender’s Standard Variable Rate (SVR), because they don’t have
enough equity in the property to re-mortgage to a competitive rate, will be able to save hundreds
of pounds a month on repayments by switching to a lower rate on the scheme.
What is the “Help to Buy” Scheme?
11
12. Contractor ‘Help to Buy’Options At a Glance…
1. Equity Loan
2. Mortgage Guarantee
Age & location of property
New Builds, in the UK
New or pre-owned & in the UK
Value of property
Up to £600,000
Up to £600,000
Minimum deposit required
5%
5%
Fees
Interest free for 5 years then
interest at 1.75% of loan value,
increasing annually by the
Retail Price Index plus 1%.
Standard mortgage fees/early
redemption penalties may apply
No fee for the guarantee, this
fee is charged to the lender.
Standard mortgage fees/early
redemption penalties may apply
Available to
First time buyers & existing
home owners
First time buyers and existing
home owners
Process
Apply for mortgage in principle
& then apply for equity loan
Same as for a standard
mortgage
Borrowing from
Equity loan from Homes
Community Agency (HCA) on
Government’s behalf PLUS
Standard mortgage from
Contractor Mortgage lender
Participating mortgage lenders:
Repayment type
Monthly repayments on capital
repayment mortgage plus lump
sum for equity loan (see below)
Capital repayment mortgage
only
Repayment period
Chosen repayment period for
capital repayment mortgage
plus 20% of house value to
be paid after 25 years or upon
sale, whichever is sooner
(subject to independent
valuation) for equity loan
Period of your chosen
mortgage term
Other eligibility criteria
Must be your only property.
Property to be purchased from
a participating builder. Will be
assessed to ensure that you are
in need of Government help for
a deposit.
Must be your only property so
existing homeowners moving
up or down the ladder will need
to sell their old property.
What is the “Help to Buy” Scheme?
•
•
•
•
•
Halifax
Lloyds banking group
RBS brands
Santander
Barclays
12
13. The great news for contractors is that Contractor-friendly Halifax is one of the participating
lenders and has already launched their 95% mortgage under the Help to Buy Mortgage Guarantee
scheme.
Halifax use the contract based underwriting that we discussed earlier in this guide and they lead
the way in competitive products in the Contractor mortgage market.
Their Help to Buy Mortgage Guarantee product is as contractor friendly as the rest of their range
so Contractors can still borrow based on a multiple of their annualised contract rate alone, even at
a 95% LTV. The even better news is that this contract based lending is available to any Contractor
in any profession.
Halifax “Help to Buy” 95% mortgage at a glance
Maximum Loan
to value (LTV)
Deposit required
95%
5%
Interest rate
5.19% – fixed for
2 years
Fees
£999
arrangement
fee – this can
be added to the
mortgage
Property type
Available on
properties up to
£600,000 and
over two years
old
The amount you can borrow will obviously depend on your income and your credit score but if
you have a good credit profile then you should be able to apply for a loan of up to five times your
gross annualised contract rate.
What is the “Help to Buy” Scheme?
13
14. 7
What Types of Mortgages are Available?
What different types of mortgages and interest rates are available to
Contractors?
It is fair to say that the myriad of different mortgages available can be confusing, particularly for
a first time buyer, but a good Contractor mortgage advisor will take the guess work out of finding
your ideal mortgage. They will search the entire market and then offer impartial, independent
advice to help you choose the one that best suits your individual needs.
With the help of your Contractor Mortgage Broker, you will need to decide how to structure your
monthly payments, either through a repayment mortgage or an interest only option, and whether
you want a fixed rate, tracker rate or a flexible offset mortgage, which offers the opportunity to put
your mortgage at the very heart of your finances.
Below is a summary of the different types of mortgages available and the main features of each
one.
Interest Only Mortgage
•
Rarely available post credit crunch but previously popular with first time buyers
•
The monthly payments are generally lower than repayment mortgages because you are only
clearing the interest each month
•
The original mortgage amount won’t change over the life of the term so if you don’t start to
make a dent on the loan amount by overpaying, or arrange a separate repayment vehicle to
clear the final debt, it can be more risky.
Capital Repayment Mortgage
•
Your monthly payments will cover both capital and interest
•
Your repayments will be structured to pay back your mortgage by the end of the term so
there is no need for a separate repayment vehicle
•
Good for Contractors who wish to overpay on your mortgage and clear the debt quicker.
What Types of Mortgages are Available?
14
15. Split Mortgage
•
Combines a repayment and interest only mortgage
•
Popular with first time buyers because the monthly payments are cheaper than on a
repayment mortgage
•
Less risky than an interest only mortgage because the loan is repaid over time.
Flexible Mortgage
•
Very popular with Contractors
•
They allow you to over pay when you can and underpay when you need to
•
Interest is calculated daily so you will benefit immediately from overpayments
•
Payment holidays can be taken for when you are in between contracts.
Once you have decided on the type of mortgage you require, you will then need to look at how
you want your interest to be structured. The interest options available are listed below.
Fixed Rate
•
The interest rate on the loan is fixed for a certain period, so your repayments remain equal
no matter what happens to the Bank of England base rate
•
Great if you need to know exactly what your repayments will be for a fixed period
•
Can be slightly higher rates than the tracker mortgages available but the added security of
the fixed repayments tend to appeal to first time buyers and Contractors on a tight budget.
Tracker Rate
•
Linked directly to the Bank of England base rate
•
You benefit from any falls in the base rate but are also at risk from any increases that would
affect your repayments
•
It is possible to access capped rate mortgages which work in the same way as a tracker
rate but are capped at an agreed level so that your repayments cannot rise above a certain
amount. This can be helpful if you are on a tight budget.
What Types of Mortgages are Available?
15
16. Offset
•
Your debt is linked to your current account so you only pay interest on the balance between
the two
•
Popular with contractors as offset mortgages offer great flexibility
•
Enables you to lower interest rates on your mortgage with the money you hold in your
instant access and savings accounts without paying off a large sum.
Standard Variable Rate
•
If you are already a homeowner and your fixed term has ended, you may be on your lenders
standard variable rate
•
This means the interest on your loan will be dictated by your lender, and will rise and fall in
relation to the base rate and the cost of borrowing
•
The standard variable rates offered by your lender are often much higher than those offered
on fixed, flexible or tracker rate mortgages
•
You can choose a mortgage with discounted rates which will be your lenders standard
variable rate discounted by an agreed amount.
What Types of Mortgages are Available?
16
17. 8
How Much can you Borrow?
Providing you have enlisted the help of a good specialist contractor mortgage adviser, you can
expect to borrow up to 5 times your annualised contract income.
For example, if your contract rate is £200 per day then your annualised contract income is
£48,000. Based on this it is possible you could borrow up to £240,000.
To find out exactly what you could borrow, simply use our
Free Mortgage Calculator at http://www.contractormoney.com.
How Much can you Borrow?
17
18. The Mortgage Process Explained
9
1
2
1. How Much can you Borrow?
2. Find the Right Property
As a guide you’ll typically be able to
achieve up to 5x your annualised contract
rate. Once you have an agreement in
principle (AIP), you can start looking for a
property.
Write yourself a list of criteria the right
property must have and then search the
property websites and contact local estate
agents.
3
4
3. Make an Offer
4. Submit your Application
Start lower than the level you think the
vendor will accept, you never know a
cheeky offer might be accepted, and you
can always raise your offer if it isn’t.
Once your offer is accepted you need to
act quickly, submit your application and
then find a solicitor. Your mortgage advisor
will liaise with the underwriter to ensure
everything runs smoothly.
5
6
5. Searches and Surveys
6. Receive your Mortgage Offer
Your lender will want to make sure that the
property is a sound investment so they will
insist that certain surveys and searches are
carried out.
Your lender will issue you with a formal
mortgage offer and will also contact your
solicitor to take the next step towards
completion.
7
8
7. Sign the Contracts
8. Exchange Contracts
Your solicitor will liaise with the Vendor’s
solicitor to draw up the contracts and both
parties will need to sign them to agree the
sale.
Once both parties have signed the
contracts your solicitor will set an exchange
date with the Vendor’s solicitor. At this point
you will need to pay your deposit to your
Solicitor.
9
10
9. Agree a Completion Date
10. Complete and Move in!
Once you’ve agreed a completion date with
the Vendor, your mortgage processor will
notify the Lender to ensure funds are ready
for release on that date.
On completion, you will receive a call from
your solicitor to let you know that the sale
has gone through. Congratulations! You
can now collect your keys and move in!
The Mortgage Process Explained
18
19. 10
Why Choose Contractor Money?
Contractor Money is the UKs largest Contractor mortgage specialist. Today we are able to utilise
bespoke underwriting with our lenders, to offer you borrowing based on a multiple of your entire
contract earnings and not just the taxable element.
As the original Contractor specialist IFA, our firm
has been instrumental in changing the attitude of
the lenders towards contractors and negotiating
the contract based mortgage schemes available
in the UK today. As such we have uniquely strong
relationships within the mortgage processing
departments of the major lenders, so you benefit from our influence with key decision makers. We
will ensure that your application is put in front of underwriters within the lending institutions who
understand your unique employment status and appreciate that the demand for your skills is
high.
After a brief chat by phone or e-mail, we should be able to find you a competitive mortgage
regardless of how long you’ve been freelancing and even in the very first week of your contract.
We’ve helped over 22,000 Contractor clients secure a mortgage to either buy their first home,
move up the housing ladder or invest in a Buy to Let property!
Choose us and you will:
•
Get the home you want by being able to borrow up to 5x your annual contract income
•
Get access to “contractor friendly” lenders who understand your unique working status
•
Benefit from competitive “high street” rates you thought were only available to those in
permanent employment
•
Enjoy a comprehensive specialist service from initial consultation to completed mortgage
offer and beyond
•
Pay no fees! That’s right; we won’t charge you a penny for our advice or service saving you
over £500.
Why Choose Contractor Money?
19
20. And if you’re looking for a buy to let investment:
• We can help you find the ideal property
• We aim to have your purchase sewn up within 4-8 weeks.
Above all you can expect our professional team to be with you every step of the way.
In short, we remove all the difficulties you face as a contractor. By avoiding the branch networks
of the mortgage providers and putting your application in front of the right people, we can ensure
the success of your mortgage application, avoiding the need for providing irrelevant HMRC
documents because we will have presented your case in the correct manner – as a professional
contractor who is eligible for bespoke underwriting for contractor mortgages rather than a limited
company director or employee.
We’re the sole financial expert to these Contractor specialist websites…
...and trusted advisers to clients of the UK’s best service providers.
Why Choose Contractor Money?
20
21. 11
Need Help with your Mortgage?
We hope you’ve found this guide useful and informative, but you probably have some more
specific questions or queries that you’d like to discuss with someone? Or maybe you’re ready to
start looking for a mortgage and would like to know how much you can borrow? Whatever stage
you are at, we’d love to hear from you so we can help you secure the mortgage you need to make
your next step in your life.
Our team of experts are on hand now, so give us a call on 0845 066 8888 or visit the website
(http://www.contractormoney.com) to calculate how much you could borrow.
All the best,
The Contractor Money Team
Contractor Money
Gainsborough House
2 Sheen Road
Richmond
Surrey
TW9 1AE
Tel. 0845 066 8888
Fax. 0845 060 8888
Email. advice@contractormoney.com
Web: www.contractormoney.com
Need Help with your Mortgage?
21