100% Mortgages

100% Mortgages

100% mortgages enable you to raise funds against the full worth of the property. They are mortgages that require no deposit. 

A mortgage lender will normally consider a 100% mortgage to be more of a risk so typically will charge higher rates of interest and often require you to pay a mortgage indemnity premium.

Usually with 100 percent mortgages the applicant will need to have a good credit profile, however some lenders offer 100% mortgages to applicants with a poor credit history even if they have county court judjements against their name (ccj's).

Apart from 100% mortgages usually having higher rates of interest, there is also a risk to the mortgage lender of negative equity. If house prices drop soon after the property is purchased, then there is no equity within the property value, which leaves the lender in a position where they can make a loss. If you need to sell or if you stop paying off the 100% mortgage and the mortgage company force a sale then the current market value would be less than the loan.

100 per cent mortgages come in many different forms including discounted, fixed, capped and variable rate. To find out more, receive a no obligation quote, or just ask an expert advisor questions then please click here.