No Deposit Mortgages
Usually a mortgage loan will cover less than the price value of the property concerned. In addition to a mortgage loan, a deposit (typically at least 5% to 10% of the purchase price) is required. If you are already a property owner, finding this deposit will probably not be a problem. If you are a first time buyer, raising a deposit of just 5% of the price of a property may seem impossible. Especially as you will also need money to furnish your new home and cover the legal and other costs of purchasing a property.
Some companies are able to help by providing Low Deposit or No Deposit Mortgages (also called 100% Mortgages). You may event be able to find mortgage lenders who are able to provide more than 100% of the purchase price.
Typically with any Low Deposit Mortgage you will be charged a higher interest rate to reflect the lender's increased risk (they may not be able to recover the full value of any loan from a sale of the property). You may also be required to take out some form of mortgage payment protection insurance.
Compare online quotes to get up to date information on the current deals available and their specific terms and conditions. Mortgage calculators allow you to work out what a specific mortgage will cost you. may be made online but seek independent advice before making any final commitments.
Remember, a mortgage is security for a loan in the form of the provision of a right in property, such as land or buildings. Typically, if terms of the loan are not met, then the lender has the right to sell the property to recover the debt.