Curious about a deposit-free mortgage?

Saving up for that deposit whilst paying rent can be tough, however Slater Hogg Mortgage Services now have access to a brand new deposit-free mortgage aimed to help renters make their first step on to the property ladder. Also known as a ‘100% loan-to-value mortgage’, this means that there’s no deposit to pay at all, as the lender is offering to loan you the full value of your very first home.*

Do I qualify for the 100% mortgage deal?

For those who have been aspiring to buy their first property, this mortgage will come as welcome news. All potential applicants will need to be properly assessed by a mortgage consultant to check they qualify and meet the lender’s affordability tests, however to be considered, you must also meet the following requirements.

• Available to first-time-buyers only. You cannot take advantage of this mortgage if you have ever owned a property before.
• You must have a track record of paying rent and household bills for at least 12 months.
• Your new monthly mortgage payments must be at least £1 less than your current rental payments.

Good news for sellers too

Not only will this new mortgage help first time buyers, but it is great news for sellers too as it will hopefully boost the chances of finding a suitable buyer with the deposit barrier being removed entirely.

Are there any other 100% mortgage deals available right now?

There are other 100% loan-to-value mortgage deals available, however the majority of these rely on a family member or friend offering savings or their own property as a ‘safety deposit’ for the mortgage. These type of deals are called ‘Guarantor Mortgages’ as the relative for example will guarantee to the lender that they will cover your mortgage repayments if you can’t for any reason.

What if I have some deposit?

If you have saved up a small deposit then a 95% or 90% loan-to-value product may be more suitable. What this means is you pay a deposit that is 5% of the property’s value and the lender will offer you a mortgage loan to cover the other 95% of the property. For a 90% deal you would pay a 10% deposit.

A Slater Hogg Mortgage Services consultant will be able to assess your circumstances to help you decide which first-time-buyer mortgage is right for you.