Is it time that you looked at re mortgaging as a contractor?
With the Bank of England again keeping the base rate at 0.5 this lunchtime, many contractors whose mortgage is on a lenders Standard Variable Rate (SVR) could find themselves in a position where switching to a fixed rate would be a better option than staying on their lenders SVR.
With the Base Rate at an all time low and only likely to increase, now may be the time to consider a fixed rate mortgage.
Recent research showed that almost 90 of lenders SVR’s are currently higher than the cheapest fixed rates. Therefore, if you are currently on your lenders SVR, now could be the time to look at your options.
Another consideration for Contractors with a high level of savings is that it may now be a good time to consider an offset mortgage to make best use of your capital. This is particular relevant in the current economic climate considering what rate of interest your savings are likely to be attracting.
Taj Kang, Associate Director at Contractor Mortgages Made Easy commented “If you want to consider your mortgage options as a contractor then utilising the services of a Contractor Mortgage Specialist will ensure that you are speaking to experts that understand the different ways that contractors are paid. Going direct, or to a non specialist could lead to failed applications which could hinder your mortgage options moving forward at a time when lenders are looking for reasons to say no rather than yes to funding”.
In other mortgage related news, Nationwide have published figures that reveal house prices fell by 1 in February compared to January, ending a strong run of nine consecutive monthly increases, and bringing the average price of a typical property during February to £161,320.
The building society said the drop in demand in January caused by the end of the Stamp Duty holiday and the icy weather seemed to have fed into February’s price drop.
Jonathan Cornell, communications manager at First Action Finance, said he believed that prices would enter a steady period before picking up in the second half of the year.
However, he added: “The end of the Stamp Duty holiday and the normal slowdown around the Christmas period led to less market activity and a lack of demand. I doubt that house prices will fall off a cliff and a slight drop means the market will be better off. It is also good news for first time buyers because properties are cheaper.”
Looking at recruitment, the resurgence in the UK economy is creating more lucrative IT recruitment opportunities for the most highly skilled of Contractors in IT.
With IT investment now once again on many businesses agendas, companies are looking to hire quickly to support their objectives, which can only be good news for contractors.
This is further backed up by the Recruitment and Employment Confederation reporting that there had been an increase in the availability of IT and technology jobs last month.
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