Posted by John Yerou
on July 8th, 2015 09:55am in
Last Updated on December 23rd, 2018 18:09pm.
Estimated Reading Time: Less than a minute
One of the many myths that surround contractor mortgages is the need for a huge deposit.
This fabrication may have started when the self-cert mortgage was all the rage. In order to bring the interest rate down, borrowers would offer a bigger deposit.
Or it may have begun in more recent times. After the housing bubble burst, the staple 5% deposit mortgage all but disappeared from the market. They remained elusive until the government introduced Help-to-Buy.
Either way, the truth is, you don’t need a bigger deposit than normal. But, yes. There are advantages for putting more down, just as there are for permies.
We expand on the options for different deposits in our following FAQ about interest rates.
Author: John Yerou
John Yerou is a pioneer of contractor mortgages and owner and founder of Freelancer Financials, Contractor Mortgages®, C&F Mortgages and Self Employed Mortgages, trading styles and brands of the award-winning Mortgage Quest Ltd.