The minimum deposit currently required for a mortgage is 5%. This percentage is the same for any buyer, whether a contractor, self-employed or otherwise. 
There is no maximum limit to the amount of deposit that you can put down, but if you’re a first-time buyer you may already be thinking that 5% is plenty high enough! However, it’s worth bearing in mind that the size of your deposit directly impacts your mortgage application and corresponding interest rate, and a small deposit can be perceived by some lenders as a higher risk.
Of course, every lender is different and will assess your creditworthiness, application, and deposit in their own way, with some manually checking, as opposed to relying on a computer which avoids “computer says no” syndrome.

The bigger the deposit, the better the rate

Lenders tend to favour individuals with higher deposits, this is true for anyone looking for a mortgage.

To gain access to the most competitive rates you should ideally aim to save a deposit of anything between 10% and 25%. There are mortgage options out there for less than that, but they will be on a much higher rate.

The interest rate lenders charge varies depending on the size of your deposit, with the greatest differences usually between 5% to 10%, 10% to 20%, and 20% to 40%. On this basis, the larger the deposit you have, the more competitive the interest rate will be, and the cheaper your monthly repayments will be.

Once you’ve established what you can comfortably repay a month, and the amount of deposit you can put down, you’ll get a pretty good idea of the purchase price of properties you can look at. You can also work out an appropriate purchase price through an affordability assessment with a mortgage lender. This will show you the level of advance available based on your income and ongoing monthly commitments. Combining this figure with your deposit amount will provide you with an indication of the maximum property purchase price you could look to buy at.

How CMME can help

At CMME we have years of expertise successfully helping contractors, business owners and independent professionals find a mortgage that best suits their needs. Whether you’re a first-time buyer, want somewhere bigger to, or plan to downsize, our experts are will help you every step of the way.