Raising the deposit to purchase a home or property is one of the biggest obstacles facing would-be buyers.
Fortunately, even if you can only put down 5% deposit, there are providers who'll lend at 95% LTV. And first time buyers can still take advantage of Help to Buy, though it's scheduled to finish soon.
Read on to learn more about the options for getting a self-employed mortgage with 5% deposit.
- 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.
So, for example, at 95% LTV, a £250,000 property purchase would require you to put down a minimum deposit of £12,500.
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 one or two 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.