Archive for the ‘100 Mortgage’ Category

How to choose the Right 100% Mortgage

Choosing a 100 mortgage

Choosing a 100% mortgage is a very important decision. It is a loan that you take on for between twenty and thirty years normally and although you can change lenders in some circumstances, it is most likely that you will stay with the same one for a long time. You may even be tied in, if you go for a fixed interest rate.

This means that it is really important to make sure that you are making an informed decision. You need to find out about the features that the different policies have and think about what you want. The types of things that you will need to be thinking about are the interest rates, administration costs, charges, customer service, reputation of lender and flexibility. It is important to think about the future and what you needs might be then, as well as the present and what you need now. This can be difficult, because no one can predict the future, but it is worth doing and thinking about as you can make some assumptions about what might happen.

You need to consider the cost of the mortgage first. This does tend to be the most important factor. You want to make sure that not only can you afford it now, but that you think you will be able to in the future. You may be a two income household and you need to consider what might happen if one of you needs to stop work or loses their job, for example. You need to consider what might happen if your expenses increase. Alternatively if your income increases will you be able to make overpayments.

You also need to consider your lender. Think about how flexible they might be if your circumstances change or if you want to change your mortgage. Find out their reputation and whether they are highly regarded. Talk to their customer services and see how helpful they are at answering your questions. There are a lot of things to consider, but with such a big amount of money to borrow, it is important that you do take time to consider it all.

Using a Mortgage Comparison Website

Mortgage Comparison Website

When you are deciding which 100% mortgage to go for, you may decide that using a mortgage comparison website could be a good idea. These are used a lot by people looking for financial products and can be helpful but are limited.

If you are trying to decide what 100% mortgage to take out, then you will need to know what is available. This could take time as you will have to search a selection of websites. However, a comparison website will provide you with a list of several and so you will not have to search around so much. This can make the whole job a lot quicker.

However, it is important to be aware that not all available mortgages will be listed on a comparison website. Therefore it can be a good place to start looking, but it is wise to do some searching yourself as well. Comparison websites get commission from the leads that they generate which means that there is a chance the mortgages they list will be more expensive because this cost of commission has to be covered. It may, therefore be cheaper to go with a company that are not on comparison websites.

It is wise to look at both types of lender and then decide which looks to be the best for you. Take a look at all of the ones on the comparison website. You may find that the cheapest ones have less of a good service or are a company that you have never heard of. It is important to think about everything and not just the price, so that you are confident in your choice. You need to be happy with the lender as well as the price that you are paying so that you know you are getting good value for money.

Value for money means that you are getting what you paid for. Cheap sometimes means bad quality and expensive can sometimes mean that you are overpaying for what you are getting. Only you know what you consider to be good value for money and so you can judge what will be the best. It is a good idea to research what you want out of your 100% mortgage by looking at what different companies are offering, so that you can make an informed decision.

How to choose a good 100% mortgage provider

100 mortgage provider

If you are looking for a 100% mortgage, it is a good idea to compare what different providers are offering. It is worth being aware that these can be more expensive than deposit mortgages and so you want to compare prices to see whether you can find one that offers you a good deal.

Price is obviously very important when you are choosing a mortgage provider. You want to make sure that you do not pay too much in charges and have a reasonable interest rate. You will therefore need to have a look at different providers and see what they can offer.

Price is not the only thing that you need to think about. You want to go with a provider that you trust. You may have certain ideas about lenders and prefer some over others. It can be worth finding out a bit more about them and their reputation, especially if you have never used them before. Ask friends and family and also look online to find out more about them. It is important for you to be happy with them. You may want to change providers in the future and you need to be happy that you will be able to do it with them. You may have problems repaying and you want to make sure that they will help you. You also want to make sure that their customer services department are easy to deal with.

There are a lot of considerations that you will need to think about when choosing a mortgage provider. You need to be happy with your choice and therefore it is worth drawing up a short list. Of course, there may be some that will not want to take on your mortgage. This is why it is a good idea to have a list of providers, so you can go to another company if the one that first choose does not lend you the money. It can take time to do the necessary research, but it will be worth it when you can relax and put your faith in a lender that you know will treat you well.

Problems with 100% mortgages


If you are looking for a mortgage you might be tempted to go for a 100% one because it means that you do not have to save up for a deposit. However, if you can avoid doing this and put down some money, you may find that it is much better.

A lender will take a big risk by lending 100% of the mortgage required for a house purchase. They will want to make sure that they secure themselves in case you cannot repay the mortgage or go in to negative equity. To do this they will charge a high interest rate. This means that you could end up paying a lot more money, than you might if you put down a deposit.

They will also want to ensure that you have a good credit rating because that will give them confidence to lend you the money. This means that it might not be something that everyone will be able to take on. Unfortunately, if you have never had any credit, which could be the case for a first time buyer, then you may not be able to get this sort of mortgage. Only by applying for one, will you find out.

There are just a limited amount of 100% mortgages out there. There were quite popular a few years ago, but they have become very limited in numbers because of the economic troubles we are having. This means that there is not much competition between lenders and not many to compare. This can lead to high pricing, perhaps in the form of high interest rates or high costs.

This all means that you will end up paying a lot more money for your house over the mortgage length if you get a 100% mortgage. It can help you out if you are desperate to own your own house and cannot save up for a deposit but it can end up being really expensive. It is certainly a decision that you should not make lightly. It is worth weighing up all of the pros and cons before deciding whether to go ahead with this sort of mortgage.

The advantages of 100% mortgages


A 100% mortgage means that you will not have to pay a deposit. The lender will give you the full value that you need to buy the property.

This type of mortgage is great for anyone who cannot afford to save up for a deposit as they will be able to get on the property market more easily. It can be difficult, especially in this current economic climate, to put away some money each month. Even if you do have savings, you will need money to pay for the move, to pay the solicitor, the removals company and things like that and so finding a significant chunk for the deposit can be very difficult.

100% mortgages are not that common, most companies do ask for a deposit, but there are a selection on offer, which means that there is the opportunity to compare them and find out which one will be the best for you.

The mortgages were set up to help first time buyers as anyone who has an existing mortgage and is moving house, is likely to have some collateral in the house that will be used instead of a deposit. The 100% mortgages do sometimes often ask for a guarantor, which means that the borrower will nominate someone who will be able to cover repayments if the borrower cannot. This is often a parent or grandparent. They do this because the lending risk is higher as the bank has no down payment on the loan or any collateral in the property.

With house prices being so expensive, even though they are dropping a bit, it is still very difficult to save up enough money for a deposit. Years ago deposit amounts were much smaller but these days trying to find 10% of the value of a property will mean putting away tens of thousands of pounds, which is a sum of money that can be very difficult for anyone to save up. With many people having not had pay rises for a while and prices going up all the time, it can seem impossible to save very much and therefore having the option of not paying a deposit can be a great opportunity.

What is 100% Mortgage?

A 100% mortgage is a type of mortgage which covers the total value of the property the mortgage is being used to purchase. For example you do not need to put any deposit down  – the mortgage lender provides a mortgage to cover the full property value.

Simply put, a 100 percent mortgage means that you have borrowed 100% of the value of the property you are buying. It is also called zero down mortgage, because you don’t have to put down any deposit. It is especially popular within the United Kingdom.

This type of mortgage is especially common with first-time buyers. High-percentage mortgages, like this one, are not as likely to be subjected to extra lending charges as they once were. At the moment there are few brokers that accept 100% mortgage applications.

Keep in mind that just like you need to shop around for the right property, you need to find the right mortgage for you. Right now 100% mortgages are available through several lendors, for example Aldermore.

Their terms are – young buyers can borrow up to 100 per cent of the property’s value, with a maximum loan of £250,000, without a deposit. But their parents have to guarantee up to 25 per cent of the property’s value by putting up the family home as collateral.

Step-parents, grandparents and legal guardians can also act as guarantors if they are ready to take the risk. First time buyers have to be aged over 25, earning more than £10,000 and with a clean credit history.