I have read that 100% mortgages are available again – Is this true

Neezam Romjon, Senior Mortgage Adviser at The Mortgage Broker LTD, offers his advice on a number of common questions and situations his clients face.

A: Yes it is true, 100% mortgages are once again available for first time buyers, however they do come with a few T’s and C’s as you could imagine. There are a few variations of the 100% mortgages being offered by lenders and these are probably best given as examples of how they work:

Example 1: No deposit needed, however additional security will be needed in the form of a charge against a family member’s property. This charge will be for 35% of the amount you are looking to borrow and your family member must have at least 40% equity in their home.

Example 2: No deposit needed, however a family member would need to provide 10% of the purchase price as security with the lender in a separate savings account – Your family member would get their savings back after 3 years with interest.

Example 3: Shared Ownership – We now have a lender that will offer you a 100% mortgage on your share of the property.

Neezam Romjon

Mortgage Adviser