February 10th, 2014
There was further positive news for Contractors this week, after it was revealed that the average age of Contractor homebuyers is nearly five years younger than the national average.
Research conducted by Contractor Mortgages Made Easy Business Development Director, Andy McBride, has found that the average contractor is aged 38 when buying property – compared to the national average ‘next time buyer’ of 42.
“This merely reinforces what we’ve known for a long time, and something that lenders are slowly starting to wake up to – that the nation’s Contractors have more disposable income than most, making serious financial commitments like property purchases achievable far earlier than otherwise” said McBride.
It has been widely known by those in the Contractor mortgage market for some time that this was the case, but with this recent research now providing vindication, it is unsurprising that further lenders are looking to take advantage of a buoyant, and growing, market by opening their criteria to those based on short-term contracts.
In further good news, it was revealed that the average loan size for Contractor mortgages was around a quarter-of-a-million pounds – over two and a half times bigger than the national average of £95,883.
“We’ve known for some time that Contractors generally spend more on property than the wider market, largely due to them having far higher average incomes, but this is very welcome news nonetheless” added Andy McBride.
“With the national average sitting just under £100,000; and the average Contractor mortgage advance being nearly three times higher, there really can be no arguing any more than Contractors represent a safe bet in the financial world.”
“With lenders enforcing far stricter affordability control than they once did, the trend would be expected to drop, as it has in the wider mortgage market.”
It should not be overlooked, however, the importance that your broker plays in obtaining mortgage funding, suggests Taj Kang, Operations Director at Contractor Mortgages Made Easy.
“This is very welcome news, however the fact remains that the vast majority of Contractors who go directly to lenders are unsuccessful, and so contacting a Contractor specialist broker really is key.”
“It’s ‘Catch 22’; more people become aware of Contractor mortgages, and so more people try to obtain them by going to their bank or building society, but there is still a record number of Contractors being turned down.”
“Failing to take specialist advice could put you at risk of being unfairly, and unjustly, declined – and that could put you in a worse position than when you started.”
Article By: Mark McBurney, Senior Mortgage Consultant
Media Contact: Raman Kaur, Public Relations Manager