Contractor Mortgage Deposit

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We will work with you to understand your situation and needs, then develop personalised advice to help you achieve your goals.

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Contractor Mortgage Deposit – how much do you need?

Many contractors are concerned that it will be more difficult to get a mortgage deal once they leave permanent employment. Fortunately lenders are increasingly welcoming to the Self-Employed and many recognise that contractors make good, reliable customers.

What is a Contractor Mortgage?

Contractors take out the same mortgage products as everyone else. The only difference is that some specialist mortgage lenders have a greater appreciation of how contractors work, and will have specific criteria and affordability calculations designed to help contractors maximise their borrowing potential.

Where a high street lender might see you simply as Self-Employed or a limited company director, other mortgage providers recognise the value and length of your current contract as your income.

Do contractors need a bigger deposit?

Having a bigger deposit is a real advantage for anyone that’s exploring their mortgage options. But there’s no reason why a contractor or someone who’s Self-Employed would need a larger deposit than anyone else.

This is particularly true now that lenders are so experienced in helping contract workers to buy a home. The key is to seek good mortgage advice and compare a wide range of deals to make sure that you will be accepted for the mortgage, and that the repayments on your mortgages are affordable.

How can I get a deposit together?

Most people save up a deposit over a number of years by putting money aside. Meanwhile, some fortunate individuals receive money towards their deposit as a gift from a family member.

An important step in securing a mortgage is providing ‘proof of deposit’, and all applications are reviewed from an anti-fraud, anti-money laundering perspective.

Part of the legal process of getting a mortgage involves checking that your deposit meets certain guidelines, and a solicitor may ask you to show evidence of where the money has come from. Gifts, savings, investments and proceeds from selling possessions are all legitimate sources for a deposit. You can also top up the deposit using funds via a loan or credit card, but not all lenders are happy with this.

Why is it better to have a bigger deposit?

Having a bigger deposit will improve your experience of the mortgage market altogether. While the minimum deposit for a mortgage is currently 5%, there are fewer mortgage products available at this level and you should expect higher rates.

It’s because these mortgages present a greater risk to the lender. If you can put a greater cash sum towards the property you’re purchasing, you demonstrate more commitment to the property and the lender is less exposed if you can’t repay the mortgage.

The average property deposit is around 10% of the purchase price, but if you can put down 20% or more you will unlock more competitive mortgage rates and have much greater choice across both high street and specialist lenders.

How can a Mortgage Broker help?

As a contractor it will really simplify your mortgage journey to talk to a Mortgage Broker like Mint. We’re here to advise you on the most suitable mortgage products and compare criteria, interest rates and fees to find the right deal.

We will explore your credit history, run through an affordability assessment and compare options to decide whether to approach a lender that will accept your contract rate as your income. We will also support you through the mortgage application phase right up until your mortgage deal completes.

Mint MP is an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. Contact our registered office for an initial chat today.


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Contractor Mortgage Deposit
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Contractor Mortgage Deposit
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