100% Mortgage
If you have no money saved for a deposit then you will need a 100 % mortgage - that is a loan for the full purchase price of the property.
Few lenders offer 100 % mortgages and the companies that do offer them at higher interest rates.
Having to pay a higher interest rate, you will be charged a bigger mortgage indemnity guarantee (MIG) premium. Take into consideration that you will be paying interest on the MIG for many years.
100% mortgages are very popular and rising in popularity amongst graduates, it is ideal for graduates in the over priced property market, predominantly aimed at first time buyers wishing to get a foot on the property ladder. 100% mortgages are not the best mortgage option for everyone. You have to be careful when buying a house on 100% mortgage if the property prices fall then you could fall into "Negative Equity Situation", and you should obtain professional advice before deciding on which type of mortgage is most suitable for your needs. To help you find the most competitive 100% mortgages deal please fill in our Mform.
Pros
You can buy a home if you have very little spare cash - no need to throw money away on rent.
Cons
Only a few lenders assist First time buyers in lending them 100% mortgage.
Typically High rates of interest is charged compared to people borrowing less than 100% 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.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
