UK 100% Mortgages
Most mortgage lenders will only lend 90% of the cost of a home. There are many people who can afford or would even want to wait until they have managed to save up the remaining ten percent. There are 100% mortgages available if you look for them. There are lenders who are prepared to lend 1oo%. For First time buyers, a 100% mortgage can be their only means of getting a foot on the property ladder as many properties are being priced out of their range completely.
However you should also realise that these mortgages do have disadvantages.
Because you have borrowed 100% of your mortgage you are more at risk of
going into negative equity if house prices were to fall. Some lenders like
to ensure that they cover themselves for the risk by offering
100% loans but by charging a higher rate of interest.
If you are borrowing the maximum, you should look at fixed or capped interest rate mortgages, since these buy valuable protection against rising interest rates.
If you fail to keep up payments the lender can legally take possession of the property and sell it in order to recoup the debt they are owed. If house prices have not risen or if they have actually fallen, the lender will only be able to sell the property for less than they are owed.
Full range of UK Mortgages:
100% | Buy to Let | Capped Rate | Discounted Rate | Endowment | First Time Buyer | Fixed Rate | Flexible | Interest Only | ISA | Non Status | Self Build | Self Certification | Self Employed | Tracker | Variable Rate
