10:16 03 September 2013
100per cent mortgage financing or 100per cent loan to value really exists. This means that borrowers do not have to pay any down payment as they’ll be allowed to borrow 100per cent of the property’s tag price. However, these deals are relatively few and far between.
Lending institutions and banks usually offer this deal only to existing borrowers or to their active clients who have savings or checking accounts with them. However, being eligible for this is much more difficult compared to when getting a regular mortgage. Borrowers must have outstanding credit score and show proofs that their earnings can cover the monthly repayments without any problem.
If you’re eligible for this type of mortgage, expect to get higher interest rate. This is because you’re borrowing much more money compared to other borrowers. Also, expect that you’ll most likely to be put under fixed rate rather than tracker or discounted mortgage.
Also, expect to pay other fees, which include arrangement fees, mortgage account fees, product fees, application fees, transfer of fund fees, and valuation fees.
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