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How Much Deposit do I Need for My Self Employed Mortgage?

*My personal preference is that you have at least a 10% deposit*

Our ethos of preparation is key, understanding the deposit that you’re going to need, is going to enable you to understand where the finish line is and what goals you’re aiming for, in terms of saving your deposit and the income that you need to achieve for your mortgage.

Watch this video below or read the blog to see how much deposit you will need for your mortgage and how you can get yourself prepared:

How Much Deposit Will I Need For My Self-Employed Mortgage?

I want to talk to you about the deposit that you need to get your self-employed mortgage. Now, it could be possible for you to get a mortgage on a residential basis, i.e., you’re a first-time buyer or you’re moving into a new family home, with potentially a 5% deposit. So that’s 5% of the property value or the purchase price. Now, the issue of doing that is there’s this very small number of lenders that are going to be available to you, that are going to offer 5% deposits. And that means that you’re going to potentially pay more for your mortgage and interest rate, and you’re going to have higher fees applicable to the mortgage as well.

So my personal preference is that you have at least a 10% deposit. And that’s going to mean that you’re going to have more lenders available to you and the interest rate could be better, and you’re also going to find that the lender fees are going to be much, much less. And with more availability means that the criteria aren’t as strict, because I have more lenders to choose from for you.

Larger Mortgages

Now, depending on the size of the property that you’re buying, or the value of the property that you’re buying, some of my clients are buying £1.2 million houses and looking for mortgages three-quarters of a million, and in those circumstances the mortgage lender often requests that you have a 15% to 20% deposit. And it all comes back to your personal data and the documentation that you have, how your business is set up, whether your self-employed, sole trader, limited company business owner, contractor. Every single lender has a different set of criteria that you have to meet. And getting a self-employed mortgage is much like making a puzzle. I’m sure you’ve made a puzzle with your children, if you have them, or when you were a child, and you’ve just literally got to piece all the bits together.

Preparation

So my ethos of preparation is very, very key, and understanding the deposit that you’re going to need, is going to enable you to understand where the finish line is and what goals you’re aiming for, in terms of saving your deposit and the income that you need to achieve for your mortgage. Because although the deposit is a big key factor, if you are unable to afford a mortgage at 95% of the property’s value then you’re going to have to save that little bit more.

So I hope that helps you, in relation to getting your deposit saved. Ideally, 10%, if you’re going for a large mortgage, like lots of my clients do, then you could be looking at 15% to 20%. If you have any questions then do leave any comments on the video. Alternatively, if you want to take the logical next step you can go to our website, and download the Seven Mistakes that Business Owners and Entrepreneurs Make When Getting Their Mortgage, that puts you into an email sequence that’s going to teach you over the coming weeks how you can get prepared for self-employed mortgage success.

Here is what to do next:

If that’s something that you would like us to help you with, then please three options. If you want help immediately and you want to speak to somebody, then you can go to the active.mortgage website and you can submit an inquiry and you’ll get called by one of my team – https://active.mortgage/

Alternatively, you can visit the same website and you can download a copy of, the Seven Mistakes that Business Owners and Entrepreneurs Make When Getting Their Mortgage, and that will put you into an email sequence that will keep you updated on how you can prepare – https://active.mortgage/7-mistakes-download/

Or you can go to Amazon and buy a copy of my book, The Self-Employed Mortgage Guide, which talks all around my ethos of getting prepared and making sure that you get all your ducks in a row to remove the stress, save yourself money, and get your mortgage with ease. Thanks very much. I look forward to seeing you again – The Self-Employed Mortgage Guide

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darren john coggins
darren john coggins
12 December 2023
Dan has been great from start to finish. As a first time buyer it can be quite overwhelming and confusing but Dan has went above and beyond. His process was very easy, efficient and we could not recommend him enough!
FUNMI AKINLAMI
FUNMI AKINLAMI
7 December 2023
Excellent service, hard working staff
akinlami akinwale
akinlami akinwale
7 December 2023
Excellent service, very patient and willing to help staff
Michael Bennett
Michael Bennett
5 December 2023
Dan has been great from the first phone call. He has made everything simple and taken the time to explain everything to me as a first time buyer, answering any questions I have along the way, highly recommend
james whitaker
james whitaker
31 October 2023
Great professional service highly recommended for anything financial
Jack Frimston
Jack Frimston
13 October 2023
What an incredible journey. Daniel Knott has been nothing but exceptional the whole way through. An incredible asset to the team and made everything so simple. Would recommend these guys over anyone else in the world every day of the week.
Roya Khalili
Roya Khalili
28 September 2023
Philip from Active Financial Limited made our mortgage process smooth and stress-free, delivering exceptional service and great rates. I highly recommend him and this company for your mortgage needs!
Chelsea Elizabeth
Chelsea Elizabeth
20 September 2023
Dan has been absolutely amazing with our remortgage. He made it such a smooth, easy process even with the added complexity of paying off our help to buy loan. Everything was clear and stress free with Dan there for any queries we had, and walked us through every step of the process. Couldn’t recommend Dan enough!
Davina Fitzpatrick
Davina Fitzpatrick
19 September 2023
Amazing service… I feel Jamie has gone above and beyond for me…. Excellent service… will 100% recommend to anyone (especially self employed) trying to get through this stuff! Can’t thank you enough!
Fares Hatoum
Fares Hatoum
19 September 2023
Amazing team great service social shout out to Sally Kehoe.. she goes above and beyond to get the job done ????????
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Self Employed Mortgage Guide

Buying your dream home is one of the most important steps in a your life, for a whole host of reasons.

Book a call with one of our team to talk about your requirements.

Book a call with one of our team to talk about your requirements.

Book a call with one of our team to talk about your requirements.