Contractor Mortgages Contractor Pensions Contractors

Article written for Contract Eye by Tony Harris (see contact details at the bottom of this article.)

Investing in rental properties continues to be a very popular route for contractors looking towards an early retirement. Over the past 10 years we have helped a number of contractors to become buy to let millionaires and these investors have built up substantial portfolios that not only provide an ongoing but also represents a substantial capital gain.

Opportunities continue to appear for the canny investor and the first step is often to use equity built up in the main residence to help fund the deposits required on the first few buy to lets.

The key to investing is often to buy, at a discount, a property with some development or improvement scope, in an area that has potential. Any early profits that are made can be crystallised via a remortgage or by using the new breed of flexible buy to let schemes that allow easy drawdown of equity. In this way funds are made available for the next purchases and within a relatively short time the business can develop a momentum of its own.

Commentators have been predicting a slowdown in the growth of buy to let for several years yet the increase in the size of the sector shows no signs of abating. There is now £120 billion worth of privately rental property in the UK (source - the Association of Rental Letting Agents).

Against a backdrop of dramatic demographic changes, more demand for single occupancy homes, the huge requirements for private housing by migrant workers from the East and with first timer buyers waiting longer to purchase, buy to let looks to have a profitable future. Contractors are sure to remain very active investors in this market and properly structuring your affairs so that the taxman doesn’t reap the rewards will remain a key consideration.

In our capacity as IFAs we have negotiated a free 2-hour consultation for ContractEye visitors who are existing buy to let investors and wish to discuss in detail whether to hold properties personally or via a limited company.

A nationwide panel of accountants in this field have been brought together to offer this unique service. Investors can benefit from a one to one session with a specialist adviser. If after these initial discussions it is agreed that the limited company route is the best way for you to structure your property holdings, there will be an option, for a fixed fee, to set up a single purpose company and put in place all the necessary initial administration.

As independent mortgage advisers we are also be able to look at any existing mortgage debt that you hold to check that you are on the best possible interest rates and to ensure that unnecessarily high repayments are not eating into your profits. Rates have become ever more competitive as the market matures and 10% deposit schemes are now available, fixed as low as 4.74%.

To find out more, simply fill out a Contractor Mortgage contact form, and Contractor Financials will get back to you.