The number of remortgage enquires from Contractors in January is already greater than any month in 2011
(PRWEB UK) 27 January 2012
Contractor Mortgage specialists The Contractor Mortgage Company have reported a noticeable increase in contractor remortgage enquiries since the New Year.
Ian Burrows, Marketing Director at The Contractor Mortgage Company said “The number of remortgage enquires from contractors in January is already greater than any month in 2011”
In the current climate, house prices remain low, meaning contractors wishing to sell up may want to hold onto their mortgage for a little longer while they wait for prices to rise again. In this case remortgaging can be a helpful option as it gives the contractor more options for what to do with their property in this time. A contractor may wish to move to a buy to let deal so that they can rent out the property, raising their monthly income, or just move to a better deal. The new mortgage pays off the old mortgage and the contractor is free to begin making repayments according to terms of the new mortgage.
Before the credit crunch it was common practice to remortgage as soon as any introductory deals or short term discounts had ended, meaning people could take advantage of cheaper and more financially savvy deals throughout the terms of their mortgage, moving on as soon as they ended to find a better deal. In an unstable economy it was proving more popular to just remain on a low Standard Variable Rate (SVR) with their current lender, meaning remortgaging took a dip for a while.
With lenders starting to feel more secure in lending again and contractors feeling more secure in their work as well as their financial situation it has become more attractive for contractors to start looking at taking advantage of remortgage deals, rather than sitting on their low SVR mortgages and possibly ending up paying more in the long run.
Now that the economy seems to be recovering there hasn’t been a better time in recent years for contractors to successfully attempt to remortgage their properties. Whether they want to buy a new property and need the extra capital, want to move to a buy to let deal or just want to boost their income, the time is right to move and contractors seem to be taking advantage of this.
Written by: Christine Baker, Freelance, Financial Journalist
About The Contractor Mortgage Company
The Contractor Mortgage Company has expertise in the field of mortgages for contractors and freelancers. They use their knowledge of contractor mortgages and lenders to bring contractors the best mortgage deals on the market.