Login or Sign Up

Login
Sign Up
The Agent of the North

Market News

The re-introduction of the 100 per cent Mortgage
We are looking for a Land Specialist to Join our Team We are looking for our Sales Negotiators to work in our Customer Care Team We are Looking for a Mortgage Adviser ANDREW CRAIG RECEIVES FEEFO GOLD TRUSTED SERVICE AWARD 2019 We are looking for a Land and New Homes Sales Negotiator We are looking for a Sales Negotiator for our Contact Centre Local Agent Selected to Join National Land and New Homes Network We are looking for a Mortgage Administrator South Tyneside Council's call for Sites Low Fell Scooter Club Easter Egg Ride Out You'll LOVE £10,000 Cashback! We are looking for a Sales Negotiator for our Gosforth Branch House For Sale with a Guide Price of £1 sells for... Help to Sell at The Courtyard We are proud to support Cash For Kids Prison for landlords who fail to comply with Right to Rent Landlord Tax Clinic with Martin Wardle Chartered Tax Accountant 10 Autumn Cleaning Tips Andrew Craig has Confidence in Property Market post Brexit vote Want to know what your Home is worth in under 60 seconds? We are looking for a Sales Advisor / Customer Service Representative Andrew Craig Careers - We are looking for a Sales Valuer for our Low Fell Branch New Gosforth Branch Now Open! New Year, New Home Event Landlords - Urgent Action Required How can you encourage people to buy your home? Why Christmas is the Best Time to Market Your Property New rules regarding smoke and carbon monoxide alarms Our New Site Is Launched!
Share this add this - share
The re-introduction of the 100 per cent Mortgage

Not since the sub-prime taboo days of 2008 has a 100% mortgage been offered by a lender.

Since then, the closest the market’s come to it are the two 95% Help to Buy mortgage schemes, and one of them ends in December this year.

That’s why the news that the first 100% mortgage in eight years has arrived on the market, comes as good news. But will it help the right people? And is it truly a “100%” mortgage? 

Well, there is a catch.

Whilst the buyers themselves may not need a deposit, a ‘helper’ of the buyer must put 10% of the purchase price into a savings account with that particular lender.

So this isn’t a 100% mortgage, it’s a 90% mortgage?

It may sound like that, but, no. Whilst the ‘helper’ will have to put the funds down, providing all of your mortgage payments are up-to-date, they will get these funds back with interest added on top after three years.

Why would the lender do this?

It helps everyone. The lender gets new mortgage customers, the buyers get their home and the ‘helpers’ receive interest on, what is effectively, a savings account.

However, on the not-so-good flipside, access to a 100% mortgage could also be seen as a lender’s ‘wager’ that house prices will increase by 10% within the next few years, as they are essentially guaranteeing that there will be enough equity in the property within three years to pay the ‘helpers’ back.

So, if your parents, or someone you’re close with, has any spare cash laying around, or if you're a parent yourself and wish to help your child, this could help you, or them, get onto the property ladder quicker than expected, 

If you don’t have that luxury, this scheme could see yet another flood of buyers that could drive house prices up even further – putting that step onto the ladder even further out of reach.

Because of this dilemma, it is imperative that you speak to a professional mortgage adviser who will be able to assist you in finding a mortgage that is right for your needs and circumstances.

Information taken from: mortgageadvicebureau.com