High street mortgage lender extends contractor lending policy
Great news for Energy Contractors this week when a major high street mortgage lender extended their IT contractor lending policy to the Energy professionals.
This exciting development for Energy contractors comes about as the result of talks that have taken place over many months about replicating the criteria that underwriters administer on behalf of IT contractors for their counterparts in Oil and Gas. This extension also means that professions such as accountants, management consultants and medical professionals will also be able to benefit from flexible assessment of their incomes via their gross contract value. There is actually no restriction at all based upon occupation, subject to meeting certain minimum income and industry experience criteria.
There is a minimum daily contract rate requirement of £312.50 per day, or £75,000 per annum when annualised over 48 weeks. Mervyn Stanley, Business Development Director of FW Accounting was delighted with the breakthrough and had the following observation to make regarding the announcement.
“A few years ago a major UK Mortgage provider became one of the first lenders to come on board with flexible underwriting for IT contractors. Again, they are at the forefront of flexible mortgage criteria for Energy contractors and freelancers in the UK”.
“Not only have they opened up their occupation category to all Energy professionals, the new criteria can be applied alongside other aspects of their existing criteria to benefit contractors. Those who are buying new build apartments with low deposits, or freelancers from overseas who do not have indefinite leave to remain yet, are just some of the areas where they already excel over their competitors.”
“It’s only been IT professionals that have been able to benefit from this criteria before, but there is good news for IT contractors as well – there is still no minimum income stipulation of £312.50 per day for them as there is for other professionals.”
It appears that the Contractor mortgage market is beginning to benefit from some relaxation in underwriting terms which when allied to lower deposits and day 1 Contractors qualifying terms, then Energy Contractor mortgages can only go from strength to strength in 2013.