April 9th, 2015
As the main political parties draw their battle lines for the last few weeks of their election campaigns, the Bank of England have predictably decided not to fine tune their economic controls over the UK.
Tinkering with the economy at this stage of proceedings would be a bold move, especially against the backdrop of the highest consumer confidence ratings for 13 years, according to polling experts GfK.
The result of this increased confidence in the UK has meant that the UK public is now more likely to make a ‘large purchase’, according to the poll, and they don’t come much larger than buying your own home.
Noises from the Bank of England over the past few months have led most to believe that a rate rise has been pushed back into 2016, encouraging many contractors to review their existing mortgages or indeed to explore their eligibility for a new home loan.
It is easy to see why, when you look at the data released by the Bank of England on Monday. Demand for mortgages has increased in the first quarter of 2015, and this is predicted to continue at a pace for the second quarter as banks look to get ahead of their lending targets before the prospect of a hung parliament becomes a reality.
Andy McBride, Business Development Director at specialist broker Contractor Mortgages Made Easy, made the following observations about how contractors could capitalise on a stronger economy.
‘Given that the contracting sector in the UK is predicted to grow across most industries, particularly in the technology space, many contractors will also be more optimistic now about their ability to contract and re-contract.
‘Banks have recognised this and have opened up their mortgage lending criteria to accommodate the UK’s professional freelance sector, which, alongside the lowest rates ever seen in the UK, mean that the next few months are a very good time to buy a home or make an investment in property.’
McBride also warns that the current mortgage conditions that prevail for contractors may be tempered by over-demand in coming months.
‘The post-election climate may be trickier for mortgage applicants, as processing timescales will be stretched and banks under pressure to process applications as a result. Contractor-friendly lenders like Clydesdale and Metro Bank are already starting to suffer. Banks will withdraw their most popular rates to curb demand when this happens, so it is advisable for contractors to know they have a cast iron agreement for a mortgage before they make offers on properties to save on processing time later.’
Article By:Taj Kang, Business Development Director at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
Tel: 01489 555 080