100% Mortgages
 

Ten years ago most lenders required you to have a deposit of 10% or more before they would consider you for a mortgage. However, over the past few years more and more lenders have been willing to grant a mortgage with a deposit of just 5%.
 

Today things have moved on further still, and there are many lenders who are willing to allow people to borrow up to the full value of the property, and sometimes more.
 

100% mortgages are usually granted to first time buyers and their attraction is obvious, especially to those who find that house prices rise quicker than they can save a sufficient deposit.
 

Whilst 100% mortgages have many advantages, there is also a downside.
 

The major risk is that you are susceptible to negative equity even if house prices were to slightly fall. Negative equity was a major problem in the 1990’s as many found it difficult to meet repayments as interest rates rose, and were unable to sell their home at a sufficient value to cover the mortgage. Do your research and make sure that the house you are looking to buy is not in an area that is likely to suffer a downturn in prices. Check if the area had huge rises in the value of the housing stock over the last few years for example – at some time huge price rises have to cool.

If you require help loans of 100% or more, please feel free to complete an ENQUIRY FORM or alternatively call us on 07951 927 795 for advice without obligation.

 

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

For mortgage advice you can choose how we are paid: pay a fee, usually 1% of the loan amount or we can accept commission from the lender