Regrettably, there are currently no mortgage lenders in the UK offering 100% mortgages. All such products were withdrawn from the market at the start of 2008, as mortgage lenders started to experience difficulties in securing funding for these products.
It may be that mortgage lenders will re-enter this market, should their confidence in the financial markets return. Until then, mortgages are only likely to be available up to 95% and lenders are likely to require a deposit of 5% or more from people looking to purchase a property.
What is a 100% mortgage?
100% mortgages allow you to arrange a mortgage deal without paying a deposit (usually around 5-15% of the property value). With house prices continuing to rise, this is a very useful arrangement for people looking to get a foot on the property ladder.
Is a 100% mortgage right for you?
100% mortgages aren’t right for everyone. Borrowing anything over 90% of your property value is a higher risk to the lender, so interest rates are generally higher. If you can afford a deposit, you may benefit from lower interest rates and a shorter repayment term. However, if you are looking for a way to purchase a house without having to save up thousands for a deposit, this is an excellent option.
Call us on 0845 603 1525 for a free consultation with a member of our friendly and experienced team. We are happy to discuss your situation and help you try to find the right mortgage. (source:firstmortgage.co.uk)
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