100 Percent Mortgages
In its simplest form a 100 per cent mortgage is where a lender could offer you loan to the exact value of the property that you wish to purchase. A 100% mortgage can be sometimes called a no deposit mortgage.
This particular type of mortgage offering is not the most popular form of mortgages as they provide some benefits, however these products equally come with a few important considerations that must be taken into account.
This sort of requirement usually arises when you require house but don’t have any form of deposit to secure the property. It is not unusual to see first time buyers considering these options.
In comparison to deposit driven mortgages the interest rate that you are likely to pay for a 100% mortgage will be higher. The mortgage market has many providers that offer these types of products so it always worth checking what rates they offer.
The selection criteria for 100% mortgage provider will most likely be a little more stringent due to the risks involved. It is important that whilst completing 100% mortgage application all information that you provide is totally accurate including all you bad credit information.
Some 100% mortgage providers will accept applications that are supported by guarantors.
Like with traditional mortgage offerings 100% mortgages will be offered in forms such repayment, fixed, variable etc. The preferred method for many seems to be repayment or variable type as it allows for better budgeting and ensures that you are not faced with any sudden hikes in your monthly mortgage payments.