100 Percent Mortgages Explained
Best 100 Percent mortgage 100 Percent Mortgage
Due to the "credit crunch" there are currently no 100% mortgages available, when the situation changes we will update this site.
100 % mortgages are a loan for the full purchase price of the property.
The problem is that your choices are limited. Few lenders offer 100 percent mortgages and the ones that do offer 100 percent mortgages charge a higher interest rate than they would for a mortgage covering a lower percentage of the purchase price. i.e. 95%
You will also find that as well as having to pay a higher interest rate, you will be charged a larger Higher lending charge (HLC)) premium than if you put some of your own cash towards the purchase price. However, to help cash flow, most lenders will allow you to add the HLC to your mortgage. Bear in mind this means you will be paying interest on the HLC for many years.
There are now some mortgage lenders that offer 100 percent mortgages without charging a mortgage indemnity guarantee premium. These 100 percent mortgage lenders also can lend higher than standard income multipliers, however their interest rates for these 100 percent mortgages are again higher than a 95% mortgage.
If you are borrowing the maximum 100 percent mortgage, you should consider a fixed or capped interest rate mortgages, since these buy valuable protection against the risk of rising mortgage interest rates.
Pros and Cons of of 100 % Mortgages
Advantages
- You can buy a home if you have very little spare cash
Disadvantages
- Lack of choice – Few mortgage lenders offer 100% mortgages
- Higher interest rates compared to mortgages with a deposit
- High mortgage set up costs as many 100% mortgage lenders charge a higher lending charge
Do you want fee free 100% mortgage advice?
For 100 percent mortgage or remortgage advise please feel free to contact us for independent mortgage advice from a professional mortgage advisor.
You may also be interested in:
- Mortgage Protection Insurance
- How Much Can I Borrow
- Best Mortgage Type
- Fee Free Mortgage Advice
- Mortgage Repayment Guide
We normally do not charge a fee for mortgage advice, however a fee paying option is available. Our typical fee would be £500
REPAYMENTS ON YOUR MORTGAGE
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
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We normally do not charge a fee for mortgage advice, however a fee paying option is available. Our typical fee would be £500