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 the owner and founder of C&F Mortgages; a trading style & trade mark of the award winning Mortgage Quest Ltd. One of the most recognised names in providing mortgages for contractors and freelancers across the UK.
In 2004 John began his career in Financial Services as an independent mortgage adviser and broker. John has been instrumental in negotiating bespoke underwriting for contractors with high street lenders.
His presence in the industry as a go-to expert is growing by the day and he is regularly cited and writes in publications both locally and nationally.