Full 100% mortgages have made something of a comeback after largely disappearing from the market in light of the global crisis of a decade ago. However, it isn’t always a good idea to take out such a large mortgage. There are three reasons for this. The first is that not all mortgage providers offer 100% mortgages, so this will restrict the number of lenders you can apply to. The second is that you’ll end up paying more money for your borrowing as lenders reserve the most competitive rates for those with a 10% or even 20% deposit. Finally, there’s always the danger of negative equity. Although people tend to assume that property prices are always on the rise, this isn’t the case. If the property market were to collapse, you’d end up owing money on a home that you can’t resell without losing a great deal of money.
In order … Read More