What Is 100% Mortgages?
Aug 08, 2008 in General, Business, Finance
100 per cent mortgages provide enough funds to the borrower to purchase a property without putting down a deposit. Essentially 100 per cent of the value of the property is mortgaged, leaving no room for equity at the date the mortgage is secured on the property.
The main benefit of 100 per cent mortgages is that the borrower will not be required to put down a deposit. This can allow people with only a small amount of savings, such as first-time buyers, the opportunity to get a foot on the property ladder.