Leeds Building Society launches tailored contractor mortgages

Leeds Building Society launches tailored contractor mortgages



Leeds Building Society has partnered up with two broker firms in order to develop a range of tailored mortgage products for professional contractors….


Leeds Building Society has partnered up with two broker firms in order to develop a range of tailored mortgage products for professional contractors.

The products come after a seven month testing period with specialist brokers.

Leeds has teamed up with broker Contractor Financials to offer the range of offset mortgage products.

The key features of the products include:

•    A two-year fixed rate from 3.19 per cent on an 85 per cent LTV
•    A five year fixed rate from 3.89 per cent on a 75 per cent LTV
•    A free basic valuation up to £560
•    £1300 or £800 completion fee which can be added to the loan amount
•    Three year fixed rate from 3.49 per cent on 80 per cent LTV
•    Available on loans of up to £500,000
•    No broker fee saving £695 compared with the other broker!

Contractor Financials has already secured annualised contract rate underwriting with other well-known lenders including Halifax, Clydesdale and Nationwide, and continues to work with other lenders to broaden its criteria to bring new banks and building societies into the contractor space.

Commenting on the new products, Tony Harris, MD and founder of Contractor Financials, said: “This marks a significant step in our ongoing work with the lending community to encourage key providers to see the benefits of supporting the contractor community. Leeds is a forward thinking lender with an excellent reputation and is very excited to bring these exclusive products to market.

“With the upsurge in the number of people turning to freelancing it is increasingly apparent that there is a desperate need for specialist financial products for this community of workers. With non-standard earnings and without the safety net of a traditional employee benefits package, freelancers find themselves let down by a financial services industry that is still thinking in terms of a 1950s employment landscape. Independent Financial Advisers like ourselves are challenged daily to fit square peg clients into round holes, working to find mainstream products to meet the requirements of freelancers. The financial services industry therefore urgently needs to work to fulfil the needs of freelancers and contractors.

“I would appeal to more lenders to educate themselves about the nature of the freelancing and contracting community and tailor solutions to meet their needs just as Leeds is doing.”

 



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