100% Mortgages

100% mortgages provide enough funds to the borrower to purchase a property without putting down a deposit.

Essentially 100% of the value of the property is mortgaged, leaving no room for equity at the date the mortgage is secured on the property.

The main benefit of 100% mortgages is that the borrower will not be required to put down a deposit. This can allow people with only a small amount of savings, such as first-time buyers, the opportunity to get a foot on the property ladder.

While this feature may be attractive, 100% mortgages have several terms and conditions that Mortgages of lower Loan to Value (LTV) ratios do not. These include:

• A higher interest rate
• A higher loan balance resulting in more interest to pay
• A limited number of lenders
• Stricter lending criteria
• Tie-ins and early repayment charges
• Mortgage Indemnity Guarantees (MIG)

In addition to these extra terms and conditions 100% mortgages also enhance the risk of negative equity. A decline in the value of the property below the balance of the mortgage will result in negative equity.

However 100% Mortgages have become popular in recent years due to rapidly increasing property prices and the inability to save for the deposit necessary for a more traditional mortgage product.

Contact a mortgage adviser in three easy steps...

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Step 1 of 3

About your mortgage

Are you looking to: How much would you like to borrow? Buy a property Remortgage a property Buy a property to let     How long do you need the mortgage for? 1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years 11 years 12 years 13 years 14 years 15 years 16 years 17 years 18 years 19 years 20 years 21 years 22 years 23 years 24 years 25 years 30 years 40 years 50 years   Proceed to step 2.

Step 2 of 3	About your mortgage
Estimated property value?   Are you a first-time buyer? Yes No   Do you need to self-certify your income? Yes No   Have you: Had a CCJ or Default registered against you? Missed one or more secured loan or mortgage payments in the last 12 months? Been declared bankrupt or had an IVA? Proceed to step 3.

Step 2 of 3	About your mortgage
Estimated property value?   How much would you like to borrow?       Proceed to step 3.

Step 3 of 3

Your details

First name: Last name:     Phone number: Alternate phone number:     E-mail address: Date of birth:   -- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 -- January February March April May June July August September October November December ---- 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989   First line of current address: Current postcode:     Based on your requirements we have selected the FSA regulated broker Broker Name to help you with your enquiry. Please click SUBMIT to confirm that you are happy for them to contact you by telephone/e-mail.

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Please only complete the form if you are a UK resident and require a UK mortgage or loan.

Your home may be repossessed if you do not keep up repayments on your mortgage.