100% Mortgages

A 100% mortgage refers to a loan that covers the entire purchase price of a property, allowing borrowers to buy a home without a deposit. These mortgages were more common before the global financial crisis in 2008, but lenders became more cautious afterward.

It’s important to note that mortgage availability and terms can change over time, and it’s always best to consult with a mortgage advisor or contact specific lenders to get the most up-to-date information about 100% mortgages in the UK.

This month Skipton Building Society have announced a 100% mortgage, which is avlible to tennants whom have a track record or paying rent and bills for a minimum of the last 12 months.

Tenants have struggled to save a deposit for a number of reasons including;

High rental costs: Rent prices in many areas are high, making it difficult for tenants to save money for a house deposit while covering their living expenses. Rent takes a significant portion of their income, leaving little room for savings.

Limited income: Many tenants may have lower incomes, particularly those in entry-level jobs or those living in expensive cities. With limited disposable income, it can be challenging to set aside a substantial amount for a house deposit.

Rising property prices: Property prices have been increasing in many regions, making it harder for tenants to save enough for a deposit. As property values rise, the required deposit amount also increases, creating a barrier for tenants trying to transition to homeownership.

Financial commitments: Tenants may have other financial obligations, such as student loans, credit card debt, or car loans, which reduce their ability to save for a house deposit. These existing financial commitments can make it challenging to allocate funds toward saving for a home.

Limited access to affordable credit: Some tenants may have a limited credit history or poor credit scores, which can hinder their ability to secure a mortgage with favorable terms or obtain financing for a deposit. This lack of access to affordable credit options can make it difficult to accumulate the necessary funds for a deposit.

Insufficient savings culture: In some cases, tenants may not have developed a habit of saving or may not be aware of the available resources and strategies for saving. This lack of financial literacy and saving discipline can make it harder to accumulate a deposit.

It’s been a frustration for clients for a number of years that they can demonstrate maintaining their rental commitment but cant save for a deposit. We now have a product that will help these clients which is fantastic news for the UK mortgage market.