"How much deposit will I need to get a self-employed mortgage?"
It's a good question, to which the answer is...it depends. In this guide, we delve into the factors affecting lenders' deposit size requirements, as well as some of the government-backed schemes available to home buyers with small deposits.
- Can I get a 5% deposit mortgage if I'm self-employed?
- Is it possible to get a 95% LTV mortgage with just one year's accounts?
- What factors determine how much deposit I'll need to get a mortgage?
- What government-backed mortgage schemes are available?
- What's the difference between the Mortgage Guarantee Scheme and the Help To Buy: Equity Loan Scheme?
- What are the pros and cons of a 5% deposit mortgage?
Can I get a 5% deposit mortgage if I'm self-employed?
Yes. You can get a 5 per cent deposit mortgage, even if you're self-employed.
Some lenders are happy to lend to self-employed mortgage applicants at 95% loan to value (LTV). These deals are completely independent of Help to Buy or any of the other government-backed schemes.
With just a 5% deposit required, a £250,000 property purchase would require you to put down a £12,500 deposit.
And whilst that's not an insignificant sum to find, there are options available if you're struggling to raise enough deposit. But more on that in a minute.
Is it possible to get a 95% LTV mortgage with just one year's accounts?
Yes, it's possible, depending on the circumstances. There are a very small number of lenders who will consider it, but only for a residential house purchase mortgage.
For flat, maisonette or apartment purchases, providers usually require a larger deposit of 10-20%.
That's because leasehold tenure is viewed as inherently riskier by lenders because the property value can decrease if the duration of the lease falls below 80-85 years.