 |
Financial Services for Contractors Contractor Pensions, Contractor Mortgages and Income Protection (PHI) - get online quotes and advice today. |
FSA to tighten mortgage lending rules
Posted Jul 19, 2010
The FSA has outlined its plans to make the process of applying for a mortgage more stringent - not only will the application process take longer, but there are fears that the self-employed (contractors included) may find it even harder to secure a mortgage loan.
The consultation paper outlines the regulator's plans for mortgage companies to verify the income of every potential borrower. If the plans go ahead, the fast-tracking of applications will no longer take place, as is often the case currently. Borrowers will have to be able to prove their income in every case.
Although lenders pulled their self-cert mortgage ranges following the credit crunch, many still do not verify the income of their customers. An incredible 43% of mortgages advanced during the first quarter of 2010 did not require the borrower(s) to prove their income.
The new proposals include affordability tests - making the lender responsible for assessing a customer's ability to pay, and requiring verification of borrowers' income in every case to prevent over inflation of income and to prevent mortgage fraud.
Contractor Mortgage Applications
The banning of self certification is likely to make obtaining a contractor mortgage more difficult, as the self-employed have always found it harder to prove their income. New contractors, who do not have a long trading history - and no accounts, can expect a more arduous application process as a result of the new rules.
More than ever, we recommend contractors use a specialist IFA to examine their mortgage options. You can find out more in our guide to contractor mortgages.
Contractor Services
- Professional Indemnity Insurance - Essential cover from Hiscox
- The fair umbrella company - take home more pay with paraplus
- InTouch Contractor Accounting - specialist online service & great advice
- Parasol - the UK's favourite umbrella company
- Contract Experts - ClearSky Accounting on 08000 325 326
- Helix Management Ltd - Up to 90% retention. Same day payments.
- Umbrella Company - 12,000 contractors can't be wrong!
- Together we're stronger! - Join PCG, representing contractors
- Cloud 9 Group - Umbrella Solutions only £27.50 per week
- Qdos - IR35 experts - Providers of low cost contractor insurance
- K & B Accountancy Group - Fixed fee contractor accounting only £75pm
- Free IR35 & Tax Review - Call ICS on 0800 195 3750
- Contractor Mortgages - the best deals, based on your contract rate alone!
Related Articles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
