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
  • Chelsea
    Re: The Right to Acquire Scheme
    I applied twice for the right to acquire the housing association house that I've lived in for the last 12 years with my husband and…
    4 January 2018
  • Ash
    Re: Buying Your Council House
    I have lived in various council and housing association properties over the last 30 years. I have lived in my current home for 3…
    29 December 2017
  • Ade
    Re: Are You Classed as a Key Worker?
    I am a nurse I will like to rent using this scheme. How can I go about it.
    26 December 2017
  • AffordableHomeAdvice
    Re: The Right to Acquire Scheme
    LadyG - Your Question:I've been a housing association tenant since 2000 but I've been informed that my property is not eligible to…
    12 December 2017
  • LadyG
    Re: The Right to Acquire Scheme
    I also put in my application in January 2015 but was informed that l will have to pay the repairs that were being carried out…
    12 December 2017
  • LadyG
    Re: The Right to Acquire Scheme
    I've been a housing association tenant since 2000 but I've been informed that my property is not eligible to buy because it was…
    12 December 2017
  • Stu
    Re: How I Got a Key Worker Mortgage: A Case Study
    Hello. will key worker schemes ever be a viable option in London if "In general, banks and building…
    11 December 2017
  • Deb
    Re: Housing Association Properties
    Hi im a single parent and my son is 13 years old i work partime 20 hours a week we are currently renting privately but the house…
    7 December 2017
  • AffordableHomeAdvice
    Re: The Right to Acquire Scheme
    Matmo - Your Question:I been an housing Association house tended since 2007 do I have right to acquire???
    5 December 2017
  • Franandy
    Re: Are You Classed as a Key Worker?
    Would I be eligible for a home I am a teaching assistant.
    3 December 2017
Further Reading...
Our Most Popular...
Add to my Yahoo!
Add to Google
Stumble this
Add to Twitter
Add To Facebook
RSS feed
You should seek independent professional advice before acting upon any information on the AffordableHomeAdvice website. Please read our Disclaimer.