Many people wonder if it’s possible to get a mortgage without a deposit. The good news is, yes, it is possible!
Although it is a little more challenging to get a mortgage without a deposit due to the risk posed to the bank, Deedle Finance specialises in helping individuals like you who don’t have a deposit but still want to enter the property market.
Our team of experts will guide you through the process and explore various options to find a suitable solution for your unique circumstances.
Also known as a 100% LTV Mortgage, a no deposit mortgage is a loan from a lender for the entire cost of the property.
For example, if your property is valued at £185,000, a no deposit mortgage means you would borrow the entire £185,000 from a mortgage lender.
While getting a mortgage with no deposit may seem like a great opportunity, it’s important to understand what you might need to pay.
There are several costs to consider when taking out a mortgage with no deposit. Deedle Finance will provide you with a comprehensive breakdown of the expenses involved, including:
If your property is unfurnished, you may also be required to spend money moving your current belongings across or buying new furniture for your home.
We will ensure transparency throughout the process, so you have a clear understanding of the financial commitments associated with your mortgage.
The interest rate remains fixed for a predetermined period, typically 2 to 10 years.
Your mortgage repayments stay the same throughout the fixed-rate period, providing budgeting certainty.
Even if interest rates rise in the market, your rate remains unchanged.
The interest rate can change over time, depending on fluctuations in the market.
Some variable rate mortgages allow you to make additional payments, reducing your mortgage faster.
If interest rates rise, your mortgage rate and monthly payments may increase, so be prepared for potential changes.
The interest rate on a tracker mortgage is directly linked to a specific external rate, typically the Bank of England’s base rate.
The interest rate adjustments follow the movements of the chosen external rate, ensuring transparency and predictability.
If the external rate increases, your mortgage rate and monthly payments may rise accordingly, so consider the potential impact.
Finding the right mortgage without a deposit can be a daunting task. That’s where Deedle Finance can make a difference.
By working with our experienced team, you can save time and effort in searching for the best deal – we search through 1,000s of mortgage deals to find the right one for our customers’ circumstances and needs. Our brokers have access to a wide network of lenders and can compare multiple options on your behalf, ensuring you secure the most favourable terms and rates available.
With our expertise and market knowledge, Deedle can navigate the complexities of the mortgage industry and identify lenders who are more likely to approve your application.
It’s important to carefully consider the pros and cons, along with your personal financial situation and goals, to determine if a mortgage with no deposit is the right choice for you.
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While the criteria for a mortgage with no deposit may vary among lenders, Deedle Finance will guide you through the general requirements.
Typically, lenders consider factors such as:
Our team will assess your eligibility and help you understand what lenders look for when evaluating applicants for a no deposit mortgage.
Applying for a mortgage with no deposit requires specific documentation to support your application. Deedle Finance will assist you in gathering the necessary paperwork, which may include:
Our team will ensure you have a complete and organised application to increase your chances of mortgage approval.
There are several reasons why you might need a mortgage with no deposit. It could be due to challenges in saving a substantial deposit, a desire to enter the property market sooner or a need to allocate funds for other important financial commitments while still achieving homeownership.
A number of lenders are developing mortgage offers for borrowers who have no deposit saved. One such offer is available via Skipton Building Society providing a 100% mortgage offer.
The Track Record Mortgage provides an option for first-time buyers to get on the property ladder, even if they have no deposit saved. Just note there are strict eligibility checks for this mortgage product including proof of at least one year’s rental payments, and also the mortgage cannot be used for a new build flat.
There is no charge for applying with Deedle. Our service is completely free and there are no upfront fees. We work to match you with the perfect mortgage lender from our network of reputable partners.
A guarantor mortgage is when someone close to you, usually a family member, takes on the risk of your debt should you be unable to make any monthly repayments. The guarantor will not be named on the deeds of the property or have any right to any share of the property. To be a guarantor, you have to pass certain eligibility with clauses ranging from their age to existing equity in their own property.
Yes it is possible to get a no deposit mortgage if you have bad credit. Many lenders will require you to have a larger deposit if you have a bad credit rating, however at Deedle, we will endeavour to support you and help find you the best solution possible.
If you cannot secure a mortgage without a deposit, there are alternative options to explore. Consider saving for a deposit, exploring government-backed schemes or seeking professional advice from a mortgage broker to explore potential solutions tailored to your circumstances.
