100 Mortgages
100 mortgages are getting more difficult to come across now. As we sit in the grip of a global financial crisis getting any kind of mortgage at all is a struggle even of those who wouldn’t have had issues in the past. A 100 percent mortgage means that you are borrowing the entire sum of your mortgage from the lender. This is most commonly associated with people who are looking to get the first foot on the property ladder, first time buyers.
A high percentage of mortgage companies and banks will not provide this type of mortgage anymore but it can be found if you perceiver. Keep in mind however that you are liable to be subjected to higher lending charges with 100% mortgages and you should factor these in when considering the budget you have available for your mortgage every month as well as fluctuations in interests rates that may occur.
Take your time when dealing with mortgage companies, it’s wise to talk to several and see what they can offer you, do not feel pressured into signing anything until you have all quotes on the table to inspect. This part of purchasing a properly is as important as searching for the right property itself so no rushing.
Consider using a broker, doing will take a lot of the pressure off of you by searching for companies who offer 100% mortgages. Having previously given the broker all of your information they will be able to see if you then fit the lenders criteria before presenting you with the information to look at. Brokers do however charge fees and they can vary greatly so it’s worth looking around at these too, maybe ask friends or family which broker they went with when they purchased their mortgage and what their experience was like with them.
There is a lot to consider when thinking of purchasing a property; it’s an exciting and worrying time in equal measure. There are lots of mortgage options out there so do not feel that just because you have very little in the way of deposit that a 100% mortgage is your only option, there is very likely to be a number of other alternatives, and keeping in mind that this is a long term commitment you should certainly investigate the pros and cons of them all before making an informed decision.
There will be differences in the mortgages you are offered even if they fall into the same category, for example a 100% mortgage from one company may vary greatly in its terms and conditions from that offered by another. Read the small print, seek the help of a professional financial advisor, this is another cost to factor in but one well worth the investment as they can point out the pit falls that people often miss.