100 Percent Mortgage

You may be able to get a 100% mortgage but you will probably need someone to guarantee the mortgage for you as a guarantor.

Can You Get A 100% LTV Mortgage?

For First Time Buyers With No Deposit

There are some lenders that will consider a 100% mortgage buy typically you will need need a guarantor.

A guarantor is a friend or family member who will promise to pay your mortgage if you cannot.

Even if you find a guarantor who is happy to take on this risk the lender may require a deposit.

Typically a 5% deposit is what a lender will accept as a minimum. During the pandemic most lenders increased this to 10%.

The good news…

In the March 2021 budget, the government launched a new guarantee scheme for people wanting to buy with a 5% deposit. 

What is a 100% Percent Mortgage?

The loan to value ratio of a mortgage indicates how much of your property you own outright (covered by your deposit, and commonly known as equity) and the amount you are borrowing (covered by your mortgage), expressed as a percentage.

Therefore, a 100% LTV mortgage means that you are borrowing all of the entire value of the property. For example, if you were to buy a property worth £200,000 on a 100% LTV mortgage, this is the amount you would borrow from the lender.

Who is eligible for a 100% LTV mortgage?

Only a few lenders offer 100% LTV mortgage deals.

These lenders will have their own criteria that you will need to meet for your mortgage application to be successful.

Typically these types of products are offered to existing homeowners only, so if you are a first time buyer the bad news is that you are unlikely to get a 100 percent mortgage. 

What are the requirements to get a 100% LTV mortgage? 

If you are an existing homeowner there may be some options available on a 100% basis.

  • Your earnings – Do you earn enough to borrow the amount you want?
  • The stability of your income – Are you self-employed or new in a job?
  • Your outstanding debts – How much debt do you have?
  • Your credit rating – Have you ever missed a mortgage payment or other repayment in the past? Do you have any County Court Judgments (CCJs) against you? Have you even been bankrupt?

Mortgage Advice Service:

For information on your mortgage options please complete our enquiry form for independent no obligation expert advice:

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