The ‘100% mortgage’ is back on the market for First Time Buyers & Home Movers! However it is a different form to the old pre-recession ‘100% mortgage’.
This new ‘100% mortgage’ works by the Borrower taking out a specific mortgage and (a) Helper(s) depositing 10% of the property purchase price into a specific account over a 3 year term.
Therefore this new ‘100% mortgage’ refers to the amount that the Borrower has to put down as the minimum deposit towards their property purchase, but it depends on the Helper(s) depositing 10% into the specific bank account for 3 years. At the end of this period, the Helper(s) has their 10% returned to them with the interest earned (calculated at 1.5% above BOE base), as long as the mortgage payments are kept up.
To discuss your mortgage options further, please feel free to contact us.