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100% mortgages

Submitted by Mortgage Broker on Tue, 2006-08-01 13:31.

A 100% mortgage gives you the chance to purchase a property without having to save for a deposit as the borrowed amount represents the total value of the property.

Not all lenders offer this kind of mortgage. They can be a useful option for first-time buyers who are used to the monthly outlay of rent and therefore are well-equipped to meet the regular mortgage payments but are not necessarily able to save for a deposit.

However, interest rates might be higher than the standard variable and the risk of negative equity is greater should house prices fall considerably.

100 per cent mortgages hit with negative equity

Some 23,000 100% mortgage holders in the UK are expected to be hit with negative equity as the property market continues to falter, according to experts.

100 per cent mortgages gone forever

According to one leading mortgage provider, the days of the 100% mortgage are now firmly in the past as the UK comes to terms with the credit crunch.

Abbey joins the 100 per cent market

Abbey Mortgages have announced that they are set to join the 100 % mortgage market this week, available as tracker or fixed rate deals.

The mortgage, which does not demand a deposit, has a maximum loan to value of £500,000. Options for the deal range from a 2 year tracker mortgage at a rate of 6.29 per cent with a £495 fee, to 2 year fixed rate deals at either 6.35 per cent with a £995 fee, or 6.99 per cent with no fee.

The a hundred and fifty per cent mortgage

Accoring to one leading mortgage expert, the number of people borrowing more than a 100% of the value of their property is increasing.

Some consumers are borrowing up to 125 per cent to give them extra money for decorating and furnishings, reports the Daily Mail - which might lead to further mortgage debt.

100 per cent mortgages fading out

The number of people in the UK taking out 100% mortgages is dropping rapidly as mortgage repayment problems continue to be an issue.

According to one leading financial analyst, many mortgage providers no longer offer the deal and those that do will only allow consumers with impeccable credit ratings to take advantage.