Contractor Mortgage Update

Contractor Mortgage Update

Contractor Mortgage Update

A new lending limit of 2m has been set by Nationwide. This is up from a 1m limit that was in place since 2008 on its 75% loan to value fee free mortgages.

A Nationwide spokesperson commented:

"There is demand for larger loans, particularly in and around London, and we want to be in a position to offer our borrowers the types of loans that meet their needs."

"We believe the market has settled sufficiently for us to return to lending larger loans. Prior to the credit crunch we did not have an upper limit on our mortgages. As the market has now stabilised we are in a position to return to more 'standard' lending arrangements."

"This is a further demonstration of our commitment to borrowers. We continue to lend prudently, but recognise that there are customers that need larger loans. We want to be in a position to offer our borrowers the types of loans that meet their needs."

Nationwide will provide higher value mortgages, but these are bespoke products, that are assessed on a case by case basis, which have proven to be useful for contractors. However, the new upper lending limit of their standard products will ensure contractor mortgage borrowers have the maximum mortgage options to consider when planning a big purchase.

Also a new two year fixed rate mortgage product with a 90% LTV has been launched from Skipton Building Society, rates are reasonable, but this is part of a bigger trend toward higher loan to value products. This could be as a direct response to the trouble many are having in getting there deposit together.

Head of products at Skipton, Kris Brewster commented:

"We are continuing to do all we can to help borrowers achieve their homeownership aspirations despite challenging market conditions, by offering choice and good value including higher LTV options to suit a range of circumstances."

We are continuing to see greater options being provided by lenders in these challenging market conditions, and although contractor mortgages are less well catered for by lenders , we do everything we can to maximise the opportunities that are given. To ensure you get a good deal we continually engage lenders in constructive conversations.

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