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100% LTV Mortgages
UK
 A
100% mortgage (UK) requires no deposit because the lender loans you
an amount equivalent to the entire value of the property.
Although these types of mortgage are named 100% mortgages they
may also be called graduates mortgages or first time buyer
mortgages by lenders and brokers.
Some lenders also offer 100%+
mortgages
(UK) specially designed for first time buyers and
university graduates. 100%+ mortgages offer as much as 125% of
the value of the home. This is very useful for university
graduates because the extra 25% can be used to furnish the first
home and pay other expenses associated with buying a home.
The main risk to 100% mortgage
(UK)
holders is that if their homes’
market value decreases they will experience negative equity.
100%+ mortgage
(UK)
holders will instantly have negative equity since
their mortgage will be larger than their homes current market
value from the start of ownership. This is ok if you are not
planning to move for a long time, but if you do move you face
selling your home and going straight into debt when you move.
As with most non-standard mortgages the lender may require that
you take out a mortgage protection policy with them.
It is possible to obtain a 100% mortgage
(UK)
to cover the full value
of your property, without the requirement to put down a deposit
or leave spare equity. 100% mortgage
(UK)
deals have become very
popular in a rising property market, particularly for first time
buyers wishing to obtain a firm footing on the property ladder.
The companies that we can introduce you to can give you access
to 100% mortgage deals, provided by UK lenders.
A 100% mortgage
(UK)
is not suitable for everybody's needs, in a
falling property market you may end up owing more than your
house is worth, i.e. a "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 appropriate 100% mortgage deal to meet
your unique and specific needs, We believe it is of great
importance to obtain Independent Advice from a qualified
Independent Mortgage Adviser, who works for you, not for a panel
of lenders.
We Believe the best advice is
Independent Advice!
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