New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Financial Services > Mortgages > 100 per cent Mortgages > 100 per cent mortgages
Bookmark and Share

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?

100 per cent mortgages are mortgage loans that cover the full purchase price of a house. They are chosen by borrowers who can't raise a deposit.

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

Receive Mortgage Advice from a Regulated Advisor

Mortgage advice

There is no better time to be seeking suitable mortgage advice from a Regulated mortgage advisor

Submit your details today for an obligation-free chat and a regulated mortgage advisor will call you back to help you find the mortgage that best fits your needs.

We will only provide your details to one regulated advisor.

Your mortgage

 * Help
 * Help
 * Help

About you


Questions marked with * are required

Please be aware that the advisor who contacts you will be a third party advisor who has no connection with us. There is no charge to you for using this service. We are paid by charging your assigned advisor a fee for this service. Any advice or assistance given to you by a third party advisor does not represent our advice or assistance and is not checked or endorsed by us. It is your decision whether or not you act on any advice or assistance you are given.

By clicking “Proceed” you confirm that:

  • You accept our Terms of use and
  • You would like to be contacted by a regulated third party advisor to discuss your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Financial Services Net Limited and other trusted 3rd parties would like to keep you advised via e-mail or telephone of products, services and other exciting offers we think may interest you. Please untick this box if you do not consent to us contacting you for further information.

Bookmark and Share
news news rss
Mortgages News
Mortgage lenders

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.

Free mortgage quoteFree Mortgage Quote

Mortgages in Scotland Mortgages in Scotland

Equity releaseEquity Release

  • Unlock equity in your home.

Switching mortgagesSwitching Mortgages

Home reversion plansHome Reversion Plans

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover

Mortgage Newsletter