There was further welcome news for Contractors recently, when it was announced that Kensington Mortgages would be entering the Contractor Mortgage market.
Exact details on their full criteria are yet to be established, but early indicators suggest that they could be a useful outlet for Contractors who have previously suffered financial difficulty.
The sub-prime specialists have confirmed that their usual criteria – which see CCJ’s or defaults over two years old ignored – will also be applied to those who work as Contractors. A welcome addition to the Contractor-friendly financial family, and further good news could be to follow, says Taj Kang, Operations Director at Contractor Mortgages Made Easy.
“This refreshing news from Kensington further highlights that lenders are beginning to wake up to the reality of Contracting – that it represents a safe bet to lend to those with good surplus incomes.”
“We are being approached regularly by other mainstream lenders looking to open up their criteria, and so this could be the beginning of a very good year for Contractors.”
A stark contrast to a time as recently as last year, when non-IT Contractors found that, when seeking mortgage funding, their options would have been severely limited.
“It was only mid-2013 that Halifax opened up their Contractor criteria to those who worked outside of the IT field, and here we are a little over six months down the line and not only have they relaxed their guidelines further still, but extra lenders are beginning to follow suit.”
“It has not gone un-noticed that lending amongst Contractors has remained positive at a time when others have either struggled to obtain mortgage funding, or had difficulty in proving affordability.” added Taj Kang.
“Sadly there still exists within the industry a misconception that Contracting is high-risk, and so until now certain mainstream lenders have been reluctant to commit to new, more Contractor friendly criteria. It appears that the tide is changing though; recent lending figures with Contractor friendly lenders have obviously not gone unnoticed.”
"With the worst of the recession seemingly now in the past, and the housing market picking up at speed, product availbility would suggest that this is an optimum time for contractors to explore their mortgage options. Once the preserve of little-known lenders, it is now almost unheard of for a Contractor to approach a non-high street bank."
And with an added number of lending options comes a far greater and more flexible choice of mortgages. Specialist guidance however, should still be sought says Taj Kang;
“This is a prime example of exactly why speaking to a Contractor specialist is essential, since Kensington are an intermediary-only lender, meaning their products are not directly accessible to the public. Not forgetting the fact that specialists often have access to exclusive rates which could save Contractors a significant amount of money.”
Article By: Mark McBurney, Senior Mortgage Consultant at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
Tel: 01489 555 080