As confidently predicted by our very own contractor mortgage consultants in their base rate predictions published on Tuesday, this lunchtime the Bank of England again kept the base rate at 0.5%.
Click Here to read what our own experts had to say on Tuesday.
The Mortgage Market Review (MMR) has been in the spotlight again this month with the news that the framework will be published by the regulator in autumn this year with implementation to happen in 2012.
We are aware that many Contractors are concerned that the proposed regulations could make it even tougher for contractors to secure competitive mortgage borrowing. This concern was particularly highlighted with some lenders that previously offered contractor mortgages pulling out of the market as a consequence of what was proposed in the MMR.
We would like to stress that there are still various competitive lending options available for contractors and if you would like to calculate what you could borrow based on your contract rate Click Here
CMME work tirelessly on behalf of contractors, we work hard to educate the lenders on how contractors are paid. CMME have secured mortgage borrowing for thousands of Contractors and the lenders that we work with now have a very clear picture that contractors are on the whole are very low risk when it comes to mortgage borrowing.
We will continue to communicate with all lenders and looking forward we hope that the landscape will change and more lenders will revisit some of the decisions they have made recently.
The Mortgage Industry has been concerned about the impact of the proposed regulation for some considerable time.
Satvinder Singh Business Development Director at Contractor Mortgages Made Easy stated that:
"My thoughts regarding the MMR have always been it is a good thing, my concern was always, will decisions be rushed through or will proper consultation take place. To be fair to the regulator they have invited the industry for feedback and changed some of their original thinking. Nobody likes change but it was inevitable and now that everyone is fully considering the impact on consumer detriment I'm confident all market participants will benefit from the resulting changes."
