New Mortgage Guides
- Mortgage Rescue Schemes
- Credit Crunch
- Mortgage Debt Help
- House Prices
- Mortgage Arrears
- Mortgage Trends
- Mortgages in Scotland
- Buying Freehold
- Buying Leasehold
- Switching Your Mortgage
- Mortgage Renewal Reminder Service
Other Mortgage Guides
- Interest Only Mortgages
- Home Insurance
- Life Insurance
- Home Information Packs
- Making A Will
- Mortgage Payment Protection Insurance
- Mortgage Surveys
- Moving Home
- Mortgage Fees and Costs
- Mortgage Interest Rates
- Home Ownership Plans
- Key Worker Mortgages
- Mortgage News
- Mortgage Calculator
- First Time Buyers
- Buy To Let Mortgages
- Mortgage Information
- Mortgage Protection Insurance
- Poor Credit Mortgages
- Equity Release Mortgages
- Large Mortgages
- Commercial Mortgages
- International Mortgages
- Holiday Homes
- Money Saving Tips For Home Owners
- Bad Credit Mortgages
- UK Mortgage Lenders Directory
- Endowment Mortgages
- Divorce Mortgages
- Mortgage News Archive
- Find a Mortgage Broker
- Bankruptcy IVA Mortgage Guide
- Bridging Loan
- USA Mortgages
- VIP Mortgages
- Capped Rate Mortgages
- Cash Back Mortgages
- Discount Variable Rate Mortgages
- Libor Mortgages
- Variable Rate Mortgages
- Fixed Rate Mortgages
- Tracker Mortgage
- Let to Buy Mortgages
- Lifetime Mortgages
- 100 per cent Mortgages
- 125 per cent Mortgages
- Current Account Mortgages
- Islamic Mortgages
- Green Mortgages
- New Build Mortgages
- Self Build Mortgages
- Shared Ownership Mortgages
- Offset Mortgages
- Offset Mortgage Benefits
- Self Certification Mortgage
- Graduate Mortgages
- Getting a Mortgage with a friend
- Shared Appreciation Mortgages
- CAT Standard Mortgages
100 per cent mortgages
A guide to 100 per cent mortgages
This type of mortgage where you could borrow the full purchase price of your new home was extremely popular before the UK credit crunch, when 100% mortgages were a niche product. They grew in popularity during the property boom in the early part of the 21st century.
The reason for their popularity was that they allowed borrowers who did not have any cash for a deposit to borrow the full purchase price. They were mostly chosen by first-time buyers who often struggled to get on the property ladder without a 100% mortgage.
Today, however, it's now nigh on impossible to get a 100% loan.
Even before the credit crunch in late 2007, lenders offering 100% mortgages were few and far between. In rare cases, lenders offered more than the full purchase price, with mortgages up to 125% available.
Update: The credit crunch of 2007/2008 had a major impact on 100 per cent mortgages and 100 per cent plus mortgages. With tighter lending criteria and tougher market conditions, mortgage lenders generally no longer offer them. But you may be able to get one from a specialist lender in rare instances.
Now mortgage lenders generally require a deposit. A few deals for those with a 5% deposit are available, but the bulk of the offers are for home buyers who have a deposit of at least 20 - 40%.
What are 100 per cent mortgages?
Why doesn't everyone opt for 100 per cent mortgages?
Firstly, they're almost impossible to find and there's a good chance you will be turned down for100% mortgage loans even if you can track down a lender offering them. Home buyers usually only go for this type of loan if they have no deposit, as the interest rate will be much higher than a standard mortgage loan where you can put down some of your own cash.
Do higher lending charges apply to 100 per cent mortgages?
If you can find a 100% loan, you will not only pay a higher interest rate but you will probably also have higher lending charges (HLCs) also known as mortgage indemnity guarantee premiums. Many lenders allow borrowers to add their HLC to their mortgage. This is not a good idea as you'll be paying interest on the HLC until your mortgage is repaid or you remortgage to a better deal.
Are there many 100 per cent mortgage lenders?
No. Today, unless you've got a deposit, you will find it hard to get a mortgage. The harsh fact is that the only answer is to save up a deposit so you can get a home loan.
What types of 100 per cent mortgage are available?
All the usual types of mortgages are offered when you can find a lender with 100% mortgage deals, although the safest are generally considered to be fixed or capped mortgages. That way, if interest rates rise, you are not faced with crippling repayments.
How should I go about getting a 100 per cent mortgage?
For more information about the mortgage deals currently on offer, use our Mortgage Enquiry Form below and get free advice from a specialist mortgage advisor. Alternatively, you can give us a call on .
100% mortgage news
- 100 per cent plus mortgages up 50 per cent
- Warning over 100 per cent plus mortgages
- Financial services provider unveils 100% mortgages
- Abbey will launch new 100 per cent mortgages
- 100 per cent mortgages for student first-time buyers
- Boom in 100 per cent mortgages
- 100 per cent mortgages with no HLC
- Financing analyst claims 100 mortgage lenders yet to alter rates
- Be prudent with 100 per cent plus mortgages
- 100 per cent mortgages if you can afford it
- First time buyers get 100 per cent mortgage deal
- 100 per cent buy to let mortgages could carry risk
- 100 per cent mortgages soaring in popularity
- 100 per cent mortgages gaining popularity amongst first-time buyers
- Exclusive 100% loan to value mortgage launched
- Portman 100% deals now available for remortgaging
Mortgage Rates by Lender
- Browse current mortgage offers from over 90 lenders.
Worried about Mortgage Repayments?
- Join our petition to Government to bail out burdened individuals, not just banks.
Free Mortgage Quote
Mortgages in Scotland
Scotland - a dedicated service from mortgagecase.com.
- Unlock equity in your home.
Switching to a different mortgage may sound daunting but could save you money.
Home Reversion Plans
Release up to 100% of the surveyed value of your home.
- Commercial property loans
- Starting a business?
Arrears & CCJs?
- Sub prime mortgages
- Arrears, CCJs
- Self certification
- Debt consolidation
Protect Your Mortgage
- 3 months free mortgage protection cover
Receive mortgage news, information & notification of interest rate decisions.