Contractors looking to buy new houses and flats have been given a fantastic new option by the UK’s largest lender. Halifax have announced that specialist broking partner, Contractor Mortgages Made Easy (CMME), can now access the same exclusive low-deposit deals that have traditionally only been available to mortgage brokers who work with property developers selling the property.
This means there is now better choice for contractors looking to choose their route for the mortgage, but more importantly that those contractors looking to buy new property are not told ‘no’ by the developer’s broker because of a lack of understanding of contractor lending.
A highlight of the new products mean that first time buyer contractors can now use the second phase of the Government’s Help to Buy scheme and buy a new home with a 5% deposit, with no government loan to pay back like the first phase of Help to Buy.
The headline-grabbing products, however, are not the ones linked to Help to Buy, therefore carrying fewer restrictions like being first time buyer only. These are available to any type of buyer, not just first time buyers, and mean that contractors can use a deposit of 10% to buy a new house or apartment.
Traditionally, contractors have needed a deposit of 15 – 20% to buy a new build apartment, so the new option is predicted to be very popular.
The products are only available via participating builders who Halifax have approved, but this approved list includes over 100 national builders, and all of the household names like Barratts, Persimmon and Taylor Wimpey.
Taj Kang, Business Development Director at CMME, welcomed the new options for UK contractors.
“Every major political party in the UK has pledged to address the housing shortage by building new homes, so mortgage funding options for these homes are absolutely vital if they are to have any effect.
“Contractors have long had the raw end of the deal when they look to buy new homes. The developer’s office will usually use strong-arm tactics to ensure their recommended broker is used, although this is not fair or legal, only to be told by the broker that the purchaser cannot proceed as their income is too small.
“Combining these lower deposit options with bespoke underwriting means that we can offer our clients a level playing field via the same opportunities as everyone else. We look forward to remaining at the forefront of conversations with lenders to ensure contractors get the best terms for their mortgages.”
Article By:Taj Kang, Business Development Director at Contractor Mortgages Made Easy
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