Finance Information

Who Can Get A Contractor Mortgage?

Contractor mortgages are specialist mortgage products designed to provide mortgage solutions to contractors and freelancers. However, they are not limited to these two categories of workers. Anyone with a source of income can get a contractor mortgage. The only conditions for one to qualify for the mortgage are:

1. Have a proven source of income
2. Provide details of current contracts or income level if a full time employee
3. Show profit retention rates
4. State/show the length of time you have been working
5. Provide your contract rate if a freelancer or contractor. For full time employees, the income level/pay slip is evaluated.

These factors enable the lender or mortgage broker (if you are using one) to carry out underwriting to determine your overall income, what loan amount you can get and what payment amounts are most suitable for you.

Full time employees, business people, contractors and freelancers with poor credit ratings can also apply for the contractor mortgage. Lending companies dealing in mortgages for contractors do not rely on credit reports to determine whether an applicant qualifies for a mortgage or not. They evaluate each application individually, and approval is based solely on the applicant’s ability to repay the loan as deduced from their earning potential.

You can still apply for a contractor mortgage even if your credit rating is good. There are many reasons why individuals may not qualify for mainstream mortgages. Such people can apply for contractor mortgages instead, where the chances of approval are high. Feel free to apply for the loan if:

- You have just started your own business and have made tangible profits during the time you have been in operation
- You have a short employment history and don’t qualify for a mainstream mortgage
- You have irregular income
- You want a remortgage

Contractor Mortgages- Understanding This Attractive Mortgage Alternative

Contractor mortgages are special types of mortgages designed for people who find it hard to qualify for regular mortgage loans. People who fall under this category usually include people who do not have a fixed monthly income. A lot of people find it hard to access regular mortgages, because of their present credit ratings or financial positions. Most financial institutions prefer lending to people with stable employments, fixed income and good credit rating. A lot of people, who can afford mortgages, however do not meet all this criteria.

Contractor mortgages are handled on a case-by-case basis, which makes it easier for this category of people to qualify for mortgage loans at reasonable rates. Contractor mortgage is different from self-certified mortgages, which is another type of mortgage. Each application is reviewed and considered based on certain factors. Factors that affect contractor mortgage review include the length of time, the mortgage amount, contract rate and retained profits.

Some people fail to take advantage of mortgages for contractors, because they lack adequate information and are afraid that they will not qualify for it. These form of mortgages, are however quite easy to qualify for. The qualification criteria for these mortgages are quite easy to meet and so the loan can easily be accessed by almost everyone. You do not need to have a three year old account to qualify for the mortgage. Contractor mortgages offer a great alternative to both first time buyers and those with not so good credit rating.  continue reading »

Three Top Tips for Transferring Money Abroad

No matter why you are looking into transferring money abroad, I’m sure you will want to ensure that you receive the best exchange rate possible.  If you go in blind it could all end in disaster, which is why I have put together three top tips to help you when it comes to transferring money abroad.

1. Avoid the High Street Banks

Whether you love them or loathe them, the high street banks are one of the worst places to go to transfer money abroad.  Not only will they probably try to sell you extras when all you want to do is transfer some money, but they will also charge a much higher rate than almost all currency brokers.

2. Research the Currency Brokers

Transferring money abroad with the first broker you come across could turn out really well, or the complete opposite.  As you just don’t know what will happen, take the time to compare brokers and choose one who offers a good exchange rate and a high level of customer service.

3. Look Into the Markets

This is more applicable if you are looking into transferring money abroad on a regular basis, rather than if you are just looking to make a one-off payment.  The markets fluctuate constantly and by researching them you will know what to expect… and when to send your money to make the most profit (or avoid the biggest loss).