100% Mortgages
Information on Mortgage Lenders who offer 100 percent mortgages
Lenders will usually only lend a percentage of the valuation of a property or the purchase price whichever is lower.
So if a house is valued at £100,000 and is purchased for £100,000, with a 95% mortgage the lender will lend £95,000, however if the same house is sold for £95,000 with a 95% mortgage the lender will only lend £90,250 with the remainder (the deposit) in both cases having to be paid by the purchaser in addition to all other moving fees
Because of rising house prices, student debt, general living costs people, especially young people, are unable to save up a deposit so there are mortgage lenders who will lend 100% to enable the purchase to take place. Most will also allow other costs such as stamp duty, solicitors and survey fees to be added. Of course the down side to this is that you end up borrowing more than the valuation so you must be sure that you will stay in the property for some years or until the valuation exceeds the debt otherwise you could end up with problems when you come to sell.
With the demand for property many houses are selling for well over the asking price and the valuation which would appear to put many properties out of reach without a sizeable deposit.
However there are mortgage lenders who will lend up to 125% of the property value by a mix of secured and unsecured borrowing at the same rate. Again if this course were to be taken it would have to be viewed as a long term commitment until the property built up some equity. Not only with they allow you to purchase a property with these products but they may allow you to consolidate any debts on loans or credit cards within the 125%.
