A 100% mortgage is a loan that covers the entire cost of your prospective property, giving you the option of being able to purchase a home even if you can’t fund the deposit.
There are various forms of 100% mortgages, including discount, fixed rate, capped and variable rate. Generally speaking, the successful applicant for this kind of loan will have a good credit history, although it’s not unheard of for lenders to offer 100% mortgages to applicants with impaired credit.
However, due to current market conditions, most lenders have pulled their 100% mortgage products. Not only does this severely limit your choice, it also typically means that both your interest rate and arrangement costs will be much greater than for a mortgage with a deposit.
is it the end for the 100% mortgage?
- For first-time buyers looking for a way to finance their step onto the property ladder, the environment just got even tougher... read more
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