Home > Affording a Mortgage > Buying a Home with 100% Mortgage

Buying a Home with 100% Mortgage

By: Jack Claridge - Updated: 14 Oct 2012 | comments*Discuss
Affordable Home Advice

There are those among us who would like to own their own home but cannot afford the deposit for a mortgage because of a low income or poor credit history. To this end such individuals can apply for a one hundred per cent mortgage. Here we look at one hundred per cent mortgages.

What is a 100% Mortgage?

A one hundred per cent mortgage is – as we have mentioned already – a mortgage which covers one hundred per cent of the cost of the home you wish to buy. This means in essence that there is no deposit to find in order for you to buy the home you are looking at and also means that if you have an adverse credit history you may still be eligible for a mortgage.

How to Apply for a 100% Mortgage?

Given the nature of the United Kingdom’s economy at the present time and the effects of the so-called ‘Credit Crunch’ on borrowing it is now more difficult than ever to get a one hundred per cent mortgage.

This is not to say that you cannot but you will have to look around for one. Your best course of action if you feel you cannot raise a deposit for a mortgage is to consult with a financial advisor who will put together what is known as a ‘package’. This ‘package’ is basically your application – be it on your own or as part of a joint application – which contains all the information that might be required by a mortgage lender.

Details included within this application are:

  • Marital Status
  • Employment Status
  • Income
  • Outgoings
  • Partner’s Income
  • Credit History

There is of course more information than what is listed here but these are the most important pieces of information to be included within this ‘package’.

I’ve Been Approved for a 100% Mortgage, what now?

Normally when you apply for a mortgage you will have a home in mind. If you have already found a home you are interested in the mortgage company will have it surveyed and will make you an offer as to the size of the mortgage they can give you.

This mortgage will normally be the exact price of the house you are interested in unless the house you are interested in requires considerable work to be carried out. If there is too much work to be carried out on the property the mortgage company will only offer you the asking price of the home and it is then down to you to negotiate with the seller as to price.

Your financial advisor will be able to liaise with solicitors on your behalf in order to resolve issues relating to contracts, land registry searches and the likes and you will be asked to sign contracts signifying your wish to proceed if your offer has been accepted.

What About Fees?

Fees such as those incurred by the mortgage company when they have surveyed the property are usually added to your mortgage. If you are not in a position to pay a deposit then it is more than likely the case that you will not be able to pay these fees however your financial advisor will have fees of their own which they will bill you for separately. It is your responsibility to pay these fees regardless of the mortgage and you should ask your financial advisor in advance to give you an estimate as to how much these fees may be.

For more information on buying a home with a one hundred per cent mortgage you can arrange an appointment with a financial advisor which is normally free or with your solicitor if you have one.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Why not be the first to leave a comment for discussion, ask for advice or share your story...

If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

(never shown)
(never shown)
(never shown)
(never shown)
Enter word:
Latest Comments
  • ste
    Re: The Right to Acquire Scheme
    right to acquire exempt from right to acquire rural area yet the have sold house to next door less then 2yrs agar
    6 December 2019
  • Shaz
    Re: Are You Classed as a Key Worker?
    I am a key worker in milton keynes, where can i find key workers properties and how can i apply for them?
    3 December 2019
  • bhavin
    Re: What Are My Responsibilities Under Shared Ownership
    I had burglary in my flat which is road side ground floor . The main door lock has broke and i have…
    2 December 2019
  • gilly
    Re: Selling Your Shared Ownership Property
    Hi I just read your article and I have shared ownership with Fortis Living and your article says that the Housing…
    28 November 2019
  • Kezza
    Re: Buying Your Council House
    Hi Im just after some advice me and my partner and our 3 kids live with my partners mum in her council house who has just been offered…
    8 November 2019
  • Keith
    Re: The Right to Acquire Scheme
    After being told for 3 years that I can apply for a right to acquire, I'm now being told I can't, on the designated rural area in…
    7 November 2019
  • Lnm_86
    Re: The Right to Acquire Scheme
    I have been a housing association tenant for 11 years, 9 of these were with one association and 2 years with another (Still with…
    5 November 2019
  • Tim
    Re: The Right to Acquire Scheme
    Hi there, Thank you for giving us a chance to ask questions with regards to affordable housing. I want to buy a house with the…
    1 November 2019
  • Sunjam
    Re: The Right to Acquire Scheme
    I have lived in this property for almost 11yrs now. I have notified my landlord of my interest to buy the property under Preserved…
    31 October 2019
  • Bash.
    Re: Housing Association Properties
    I am currently living with my parents in a Te'o bed ground floor disable flat with my 3yr old daughter and my Nephew. My 23yr…
    28 October 2019