Many people still want a 100% mortgage. Many people still think you can borrow over the value of your property; these mortgages were available up to 125 % of the value of your property. 100% mortgages are still available, but the market is extremly limited.

 The two deals that are available have a strict lending criteria. You have to be over 21, your income must be more than 25k you can only lend on repayment basis and it’s only for people who are buying. They will only lend you up to 100% of the mortgage. 100% mortgages have very strict credit rating criteria. Squeaky clean is the phrase that comes to mind. The other 100% mortgage lender is similar to a guarantor mortgage, except the property is the security for the 100% mortgages lender. The lender requires security of 25% of your parent’s mortgage.

What you need to know about 100% mortgages:

Apart from charging higher interest rates for 100% mortgages the other risk for the lender is possibility of negative equity. As no equity is placed within the property value, because there is no deposit, if house prices instantly decrease after the property is bought then no equity exists as a buffer. This means that if you need to sell your home the 100% mortgage taken out on the original value of the property would outweigh the property new value.

You first need to know what your credit rating is. Armed with this information you stand a better chance of ensuring you get the best bad credit mortgage. It’s a mine field out there, knowledge is power. 1 in 4 people have a bad credit mortgage.

Understanding the basics have you got had any of the following bad-credit-mortgage-check-credit-files.asp

CCJ county court judgment

Defaults or late payments

Mortgage arrears

There are also other reasons for needing a bad credit mortgage loan. These are all generally called adverse credit history though the specifics may change depending on where in the UK you have lived. Arrears on rent payments, arrears or defaults on loans, decrees (in Scotland), County Court Judgements (CCJs), bankruptcy and individual voluntary arrangements (IVAs) are all reasons why someone might need a bad credit home mortgage loan. bad-credit-mortgage-deals.asp

If so you will probably have to have a bad credit mortgage. You shouldn’t worry what you now need is to do get the best bad credit mortgage available to suit your circumstances. Once you have your bad credit mortgage sorted you then need to live within your needs and build your credit rating back up to a level where you will be able to remortgage away subject to penalties and fianancial benefits. Once you are back on track you will then be eligible to get a mortgage from the high street lenders. This is where the best mortgages are.

A report from Halifax says the average stamp duty bill for first-time buyers has almost doubled over the last five years. In the South East, South West and East almost all first-time buyers paid stamp duty, while in Northern regions only 42% were liable, the report said. The threshold at which buyers pay 1% has been increased to 125′000 this has helped first time buyer mortgages purchases.

“Stamp duty has again become an issue for first-time buyers because the stamp duty thresholds have not kept pace with house price inflation,” said Martin Ellis, Halifax chief economist.

“We call on all political parties to raise the stamp duty thresholds to compensate for house price inflation over the past decade,” he added.

According to a monthly survey from the Halifax, prices across the UK fell by 0.3% in February, taking the annual rate of inflation down from 4.5% to 4.2%. This is welcome news for anyone looking to arrange a first time buyer mortgage. It obviously is becoming a first time buyers market.

Shop around for a first time buyer mortgage many lenders still see new customers as good business. Have a look at what the smaller lenders have to offer, the big banks don’t fair so well in the lists of low cost lenders this time of year. Some of the best first time buyer mortgage deals come from Newcastle, Cheshire, Nottingham and the Co-Op bank.

You need the best first time buyer mortgages available, no doubt you will have a lot of questions to ask. First and foremost, what are the best first time buyer mortgages deals for first time buyers?

Should I opt for a fixed rate for 3 or 5 years, a capped rate, a discount or a tracker, which could put my monthly budget at risk for my first house? How do I get my first time buyer mortgage? Should I go to a bank, broker, building society or a specialist lender when I’m buying my first house? How much can I borrow for my first mortgage, and how much will it cost me?

If your entering the world of mortgages for the first time you should always shop around and get a few deals. Speak to your bank about first time buyer mortgages. Don’t just consider what you can afford now; always consider how your finances will fair over the next 3 to 5 years. What if income changes for the worst you will still have to pay this first time buyer mortgage. Fixed rates provide stability. Trackers give you a chance of beating the market. Better to be safe than sorry!

Many first time buyer mortgages borrowers overstretch themselves. That property you always want is just that extra five or ten thousand more. First time buyers have time on their hands and are always optimistic. Most people expect property prices to rise; this may be the case over 25 or 30 years. But always consider the short term be realistic.

When you’re in the property with what you have considered being the best first time buyer mortgage available to you at the time of  your purchase, enjoy the fruits of your hard work. Welcome to the housing ladder!

So you still need a 100% mortgage. What you need to be careful of is not overstretching yourself to far that you can’t afford to pay the bills. 100% mortgages are commonly used to help people get onto the housing ladder.

The obvious concern now is will you be able to afford the mortgage payments when you fixed rate comes to its end. Always consider a longer fixed period, this will hopefully give you time to adjust you finances to suit your commitments. 100% mortgages are still available and for someone with a long term plan and a well managed monthly budget they can still offer a way of purchasing your dream home.

100 % mortgages are a loan for the full purchase price of the property, lenders are not offering any more than this. 125% mortgages have all but dissappered for now.

100% mortgage choices are limited. Very few lenders offer 100 percent mortgages and the ones that do offer 100 percent mortgages have always charged a higher interest rate than they would for a mortgage covering a lower percentage of the purchase price. i.e. 97% or now more commonly 95% & 90%. 

As well as having to pay a higher interest rate due to the risk taken by the lender, you may be charged a larger higher lending charge premium (also referred to as mortgage indemnity guarantee MIG) than if you put some of your own cash towards the purchase. However, to help with your initial upfront fees, most lenders will allow you to add the MIG to your 100% mortgage. You have to consider that you will be paying interest on the MIG for many years.

There are now some mortgage lenders that offer 100% mortgages without charging a mortgage indemnity guarantee premium. These 100 percent mortgage lenders also can lend higher than standard income multipliers they are generally 4 times your income, however their interest rates for these 100 percent mortgages are again higher than a 97 & 95% mortgage.

If you are borrowing the maximum 100% mortgage, you should consider a fixed or capped interest rate mortgages, since these buy valuable protection against the risk of rising mortgage interest rates.