Independent
mortgage information on the 100% mortgage..
What no need to save for a deposit.
Sounds to good to be true, a mortgage lender offering a
100% mortgage whats the catch.
Mortgage lenders started to offer
the 100% mortgage to capture more of the first time buyers
who were strugling to save up deposits for their news homes.
As the name suggests these mortgages cover the entire cost
of the house purchase. I.e. if the property you wished
to purchase was £100,000 they would lend £100,000.
They can offer an ideal way for first
time buyers to get on the property ladder but they are
not right for everyone. You may be charged a higher landing
charge (HLC) if borrowing such a high percentage due to
the lenders increased risk.
Another danger of purchasing using
a 100% mortgage is that you have no equity in the house
and if interest rates were to rise and house prices fell
you would be in a negative equity position, you would owe
more on the house than it is worth.
Fortunately, 100% mortgages are not
as expensive as they once were and their are many comapnies
offering competavite deals.
For independent information and enquiry
on a 100%
mortgage or any other mortgage type try this
site.
Whatever type of mortgage
you are looking for it pays to get independent qualified
advice.
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Choosing
the right mortgage can save alot over the life of your
mortgage.
Mortgage
lending fell 12% in April, according to the latest figures
from the Council for Mortgage Lending.
(source
bbc)
Looking
to find out how much you can borrow then try a mortgage
calculator
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