Any 90% LTV for contractors?

Jessma

We have saved 5% deposit, however as contractors, we've been told by our mortgage advisor the best we can do at the moment is 85% LTV. Is there actually no 90% for contractors? We are also first time buyer. 

We can get 15% deposit but we need another month. Can we pay 5% deposit to the seller to secure the property then pay the rest 10% on exchange of contract? My husband thinks we still need to pay 15% deposit after the total price take away 5% which means we have to pay more deposit in total. Thanks! 

CheesyWiggles

By ‘contractors’ do you mean freelance IT/finance professionals? If so, that’s a niche area where your brokers will be able to advise you better. There are a few specialist contractor brokers, not sure if I’m allowed to recommend so I’ll hold off. I spoke to one recently who said there was one lender that was offering a 10% deposit mortgage until recently, though it was so popular they had to remove it from the market. The contractor specialist brokers tend to have good relationships with their account managers - if they say it’s a no go, it’s a no go. The affordability checks are fairly early on in the application process.

Brock_and_Roll

If you can save 10% in a month, why not hold off till you have 20% - would make life so much easier, probably cheaper in terms of mortgage costs, and significantly less risk of ending up stuck with negative equity.