100% Mortgage

No deposit mortgages are available with variable, fixed, capped or tracker rates, please speak to the adviser who will contact you for more information.

As well as those in regular employment with a good credit history, lenders will also accept those with non standard employment eg contractors or those with multiple jobs or those whose income consists largely of bonuses or commission etc.

There are lenders who are also able to help those with a bad credit history for example, county court judgements (ccj), mortgage arrears, ex-bankrupts and those with IVA.

If you have found your dream home but are unable to raise a deposit then this mortgage may be right for you. Please note that because you are borrowing the full value of the property, there is a higher risk to the lender which may be reflected in a slightly higher interest rate or a mortgage indemnity guarantee.

Please click here to read about the house buying process.

Please click here to read about mortgages and the different mortgage types available.

Please click here to read about the different mortgage products available.

Please click here to read about self certification mortgages if you have a bad credit history or non standard employment.

What is a 100% mortgage

It is where you borrow 100% of the purchase price of your home, hence it relates to the amount of money borrowed and not the type of loan. Interest rates for this type a mortgage can be fixed or variable and repayment can be capital plus interest or interest only. For more information on mortgage types please click the link on the left hand side of the page.

This type of mortgage allows you to buy a home without a deposit which is particularly helpful to first time buyers when you consider the other associated costs of buying a house, for example legal and valuation fees as well as stamp duty. Getting a mortgage for the full purchase price may also be an option for people who may be able to afford a deposit but do not want to. Rather than tying money up in property some people might prefer to invest elsewhere or to use the money to buy furniture or to consolidate outstanding debts that are at a much higher interest rate.

The interest rates on a no deposit mortgage may be slightly higher than the average mortgage because the lender is providing a more risky service, and because there are fewer of these 100% deals available on the market, there is less competition to bring prices down. It is more risky for the lender because if house prices fall and you default on the mortgage, then when selling the property they will get less than the amount that they borrowed to you.

To help get over this some lenders will charge you a mortgage indemnity guarantee (MIG) if you want to borrow above a certain percentage of the value of the house. The MIG is an insurance policy that you pay for which benefits the lender. In the recent past many lenders have scrapped MIG’s due to bad publicity. This arose because many borrowers were being charged large amounts of money for these and then were still being chased by the lender for the shortfall between what the house sold for and the mortgage balance in the event that the house was repossessed.