Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Mortgage Glossary
- Mortgage Glossary Choices:
- 100% mortgage
- Arrears
- Buy to let
- County Court Judgements
- Defaults
- First time buyer
- Flexible mortgages
- Individual Voluntary Arrangements
- Keyworker mortgages
- Let to buy
- Non status
- No deposit mortgage
- No proof of income
- Self build
- Self certification
- Self employed mortgage
- Underpayment
100% mortgage
Today many lenders are willing to allow people to borrow the full value of the property. A 100% mortgage is usually granted to first time buyers and their attraction is obvious.
In many cases the amount required for a deposit is increasing faster than people can save. Therefore a 100% mortgage gives you a chance to break out of this spiral. This type of mortgage can also be considered if you have outstanding debts.
Generally this mortgage will cost more than a 90% mortgage, as you may be charged a higher interest rate, but it will usually be lower than the interest rate on Loans or Credit cards and therefore could be one option to consider if you have outstanding debts. However, please note that securing a previously unsecured debt could result in you losing your home in the event that you cannot repay the loan. You should also be aware that a reduction in monthly payments is likely to be acheived by increasing the loan term, hence the overall cost will be more.
If you are experiencing payment difficulties with credit cards/loans, you should always find our whether it is possible to negotiate an arrangement with your existing creditors, before considering adding the credit cards/loans to a mortgage.
100% Advantages |
100% Disadvantages |