A 100% mortgage is a mortgage for the full purchase price of the property that you are buying. 100% mortgages are ideal for those people who want to buy a property but do not have a typical 5% or 10% depoosit to reduce the overall amount of the mortgage.
Borrowers who take out 100% mortgages may be liable to pay a higher lending charge (HLC). The higher lending charge is typically charged when you borrow 90% or more of the purchase price of your property - it can also usually be added to your overall mortgage but it will increase your monthly payments.
100% mortgages are ideal for those people who do not have a deposit but you may also pay a higher interest rate. 100% mortgages can also be obtained on a fixed rate or capped rate basis.
Select from the list below to find out more about the different types of mortgages or call us for a no obligation chat on 0800 066 5570.
Charcol is not authorised to offer investment advice. We recommend you seek professional advice with regard to these topics if you believe they may affect you.