No deposit mortgage

No desposit mortgages are also refered to as a 100% mortgage. This mortgage type is very popular in a rising property market, particularly for first time buyers wishing to obtain a footing on the property ladder and do not have a deposit.

Often no deposit mortgages require a good credit background for the applicant. However, there are lenders who can provide no deposit mortgages for poor credit applicants even with ccj’s.

Apart from charging higher interest rates for 100 percent mortgages the other risk for a lender is negative equity., i.e. there is no deposit therefore no equity.

A no deposit mortgage may not be for everyone and you should seek profesional mortgage advice from a qualified broker or company.

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