Posts Tagged ‘Sourcing’
Do you need to consider a Contractor Mortgage?
The following article has been submitted for publication by Rob Turner of Contractor Mortgages Made Easy. Walker Fox have no affiliation with Contractor Mortgages Made Easy and this article is published entirely for information purposes only and should not be considered as financial advice or otherwise.
What is a contractor mortgage?
Obtaining a mortgage in recent years has become increasingly difficult for a variety of different people. With so many people applying for loans, all of which possess different economic situations, many lenders have begun to recognise the need for a variety of different mortgages, so that an array of people are able to obtain the right mortgage for them.
A group of people that often struggle to obtain a mortgage more than any other group is contractors and often the only and best option available to contractors is a contractor mortgage. A contractor mortgage is considered by lenders as a ‘prime rate’ mortgage product that includes bespoke underwriting. Essentially this means that a mortgage lender will carefully and thoroughly assess a contractor’s application on an individual basis rather than a ‘one fits all’ mortgage offered to other borrowers.
There are a range of different factors that are considered by lenders for each individual borrower, these factors include the contract rate of the contractor. The current retained profits of the individual. Also the duration of existing contracts held by the borrower and the length of time an individual has been a contractor or freelancer. All of these factors essentially assess a contractor’s financial stability, job stability, current assets as well as assess a number of other aspects of an individual’s employment.
A large number of people can apply for a contractor mortgage because many lenders do not have a set of criteria for this type of mortgage. In fact many people will be surprised at the variety of mortgage products available for this type of mortgage, for example first time buyers or those with an adverse credit rating may benefit from choosing a contractor mortgage. Although, contractor mortgages are often only recommended to contractors and the self-employed as it offers these individuals the most benefits.
While there are a number of other alternatives for contractors and certain contractor mortgages can be difficult to obtain, most lenders who offer this option strongly recommend it as it can offer the most benefits to self employed individuals.
Contractor Mortgages Made Easy is a trading name of Mortgages Made Easy Limited.
Authorised and regulated by the Financial Services Authority (FSA reg. 414798).
Registered in England No. 4886692 Registered Office: 9 London Road, Southampton SO15 2AE.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Please be aware that Buy To Let, Commercial Mortgages and Overseas Mortgages are not regulated by the Financial Services Authority.
Walker Fox Ltd are Commercial Management & Property Consultants who act for property investor clients in and around Wakefield, West Yorkshire.
Please leave a comment if you have enjoyed the article or contact Walker Fox on 01924 896190, via email info@walkerfox.co.uk, Skype: walkerfox or connect on Twitter@walkerfox
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Top 4 investment fund and residential property investment in Wakefield
Your Property Club recently published an article about why now is such a great time to invest in property.
Lambda Alpha, it’s the honorary society for the advancement of land economics, a worldwide fraternity of property professionals, made up of architects, solicitors, town planners, academics, developers and a whole host of other property-related people.
Bret Alegre-Wood of Your Property Club is a Board member of the London Chapter, and recently spent a week in Scotland at the annual Land Economics weekend designed to showcase a city’s land economics.
One of the symposiums was hosted by Scottish Widows Investment Fund (SWIP) who are in turn owned by Lloyds who are currently the 4th largest fund in the world, and during the usual dry commentary about Scotland and the benefits of fund management some interesting statistics actually came out that Brett has introduced into his article.
These are the stats that SWIP are basing their investment decisions on over the next five years.
1. They believe that property will be the best performing assets class over at least the next five years (to at least 2016).
2. They believe that it will grow by at least 15% over the next 3 to 5 years due to a lack of supply and a return to lending.
3. They believe this will start in earnest in the middle of 2012.
At Walker Fox, as Property Consultants who specialise in Wakefield, we always maintain that investing in property is a great long term strategy and ‘now’ is always the right time to take action.
After the Symposium, Brett reportedly asked the Fund Manager which sector he felt would be a better investment over the next 5 years. Expecting to hear ‘the commercial sector will see a return to fortune‘ or some other version of the usual party line. (This is typical because residential is normally too small a transaction value for them to consider so therefore it’s not an option.)
The initial answer seemed at first to go down that road: ‘The commercial sector will see increasing yields‘, but after pressing some more, he admitted ‘we’re very upbeat about residential, values have clearly bottomed out and nowhere is the lack of supply more pronounced‘.
Not quite a full admission that residential is better than commercial but it’s a very positive sign to read that a fund manager agrees that residential property is a good investment.
If the fourth biggest fund in the world thinks property is a good investment over the next 5 years it might it be time for YOU to seriously consider jumping in too?
The average property in the Wakefield area has historically been affordable, none more so than in the past couple of months. As with many other regions, prices have risen slightly in April to £121,002, represents an increase of 0.2% as reported by the official statistics from HM Land Registry.
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Walker Fox visits Leeds PIN meeting
Last night I attended the Leeds PIN meeting (Property Investors Network) at the Crowne Plaza hotel in Leeds city centre.
The meeting was held in a ground floor function room in the hotel with seats set in a traditional theatre layout facing the speakers table at the front of the room, their were chairs set for around 40 guests.
I attended with friend and colleague John Paul from The Castledene Group, John had travelled down from County Durham to see if he could meet a few more people in advance of speaking at the PIN Manchester meeting next week.
We arrived at 6.00pm for registration which for us, merely involved writing our names on a sticker to wear as we were both pre-registered onto the event. Interestingly, for new attendees (as we both were) our names were underlined. This was to highlight us as ‘new people’ to other new people so that we all felt more comfortable and not alone.
By around 6.45pm the room was almost full and people were mixing well and chatting between themselves. I had the pleasure of meeting my youngest ever property investor yet, a young gentleman age only 15! He was telling me about his latest deal whereby he negotiated a purchase of a property worth 67k for an agreed price of only 36k, wow! I thought, what a negotiator!
The meeting was opened by Dave Price who is the local host for Property Investors Network, Dave ran through a brief agenda and also advised that this months free prize draw for those who had pre-registered for the event would be a free place on one of Simon Zutshi’s training days.
We were presented with a local Lettings Update by Lee Sykes of Concentric Lettings in Guiseley, Leeds shared with the room some interesting information such as an increase in rental demand of around 19% in Q3 of 2010 along with a note of caution due to a new trend emerging towards bogus letting agents who are tricking prospective tenants into parting with deposit bonds and advance rental payments for properties that don not actually exist.
Leeds PIN something new this month, it was entitled ‘speed networking’ this concept involved the delegates being split into two groups facing each other. You were then given 30 seconds to tell the person opposite about yourself and what your involvement in property is. After 30 seconds, the roles of speaker/listener were reversed. Each minute, the person on the inside line moved down a place and the process was repeated. The general concensus was that this was a great way of meeting new people without waffling on. However, 1 minute per person would have been a better time period.
The main speaker for the event was Glenn Ackroyd. Glenn shared with us his background from growing up within a state benefit culture on a Bradford housing estate through obtaining his first job at the local county court to becoming a successful property investor owning over 100 properties.
Glenn spoke at length about the importance of a good strategy and explained how he faced financial ruin at the onset of the financial crisis back in 2008 and the steps that he has personally put into place since in order to protect his portfolio and now has the opportunity to share some of these strategies with others. Incidentally, Glenn will be having an in-depth article published in the December edition of Your Property Network magazine on this subject.
After the main speaker there was a general networking/discussion period. As it was around 9.00pm I said goodbye to a few people and made my way home having thoroughly enjoyed my evening and an intention to attend the next event in the New Year.
If you would like to comment on this article our discuss any of the content on this site, please contact me on 07960 753550 or via email rob@walkerfox.co.uk or to visit our website on www.walkerfox.co.uk.
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Walker Fox interviewed by Vanessa Warwick of Property Tribes
There is a lot of talk about ethical trading both on the Property Tribes forum where I often hang out and elsewhere, I was invited by Vanessa Warwick of Property Tribes to discuss this topic.
























