Contractor Mortgage interest rates could stay on hold until the end of 2013. Leading economist Ernest & Young predicts that Bank of England base rate will be kept on hold at 0.5% until 2014. Excellent news for contractors seeking out BoE base rate tracker mortgages.
They state that high energy prices and increases in the VAT will keep CPI inflation above target over the next 18 months, but it will then move well below 2% as these effects wear off and spare capacity bears down on pricing decisions and wage bargaining.
To prevent CPI inflation moving below Ernst & Young say it will be necessary to keep the Bank base rate low at 0.5% for much longer than the markets have anticipated.
Peter Spencer, chief economic advisor to the Ernst & Young ITEM Club, says: “A base rate of 0.5% will begin to look like the new normal.”
A number of contractor friendly lenders like Woolwich are offering attractive base rate tracker mortgages through contractor mortgage specialist like us. Irrespective of whether you are operating through a limited company or working under an umbrella company, we can secure a contractor mortgage based simply on a multiple of your contract rate alone.
We also bypass the usual bank branch and call centre staff to present your mortgage application directly to senior underwriters ensuring that your mortgage application is processed quickly and without hassle.
At Freelancer Financials our mortgage advisors are more than happy to help in any way they can, so please do contact us on 020 8421 7999 or email us at [email protected] if you wish to learn more about contractor mortgages.
