100% Mortgages

What Is A 100% Mortgage?

With a 100% mortgage, the mortgage lender will loan you the full amount for the property you want to buy which will mean that you do not have to find a deposit to put down against the house. In fact there are some mortgage lenders that are offering mortgages up to 125% of the property price.

What Benefits Do 100% Mortgages Offer?

The main benefit of a 100% mortgage is likely to be for first time buyers and those stretching to buy a new house, because there would be no need to find the deposit. Usually on a standard mortgage the deposit will be between 5% and 25%.

What Are The Possible Downsides To 100% Mortgages?

Often the bigger percentage that the mortgage lender loans you towards your house, the higher the interest rate you will pay. Therefore you could end up paying an unnecessarily high rate if taking out a 100% mortgage. There may also be a tie in period where you cannot repay or change your mortgage within an agreed period of time.

If you are in any doubt about your mortgage it is always best to consult with an independent financial advisor before committing to the mortgage.