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4 Jul 2022

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100 Percent Mortgages Explained

100 Percent Mortgage

Due to the credit crunch there are currently no standard 100% mortgages available as detailed below.

However there is a guarantor mortgage available up to 100%. For more information regarding this product please call us on 0845 262 2226.

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


  • You can buy a home if you have very little spare cash


  • 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:

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500


Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500

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