Apply For A 100% LTV Mortgage - Fully Online With The Best Rates!
If you are looking for a 100% LTV mortgage, Octagon Capital can help find the best offer for you. Fill in our simple online form and our team will provide the best rates in your area.
As a first-time buyer or existing homeowner, you might not have a deposit saved and are looking for a 100% LTV mortgage.
With a 100% LTV mortgage, you will borrow the full value of the property from a lender. Read on to check if you are eligible and how to get started on your application today!
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100% LTV Mortgages – No Win, No Fees
Although they are not very common, you might be able to get a mortgage without a deposit.
If you are exploring your options for taking out a no deposit mortgage, there is an important ratio you need to be aware of which will affect the rate of interest you can get: loan-to-value (LTV). This is a way of expressing how much you are borrowing compared with the total value of your property.
Your LTV is shown as a percentage and is a key factor in dictating the type of mortgage you will be able to get. As a general rule, the best mortgage deals will be given to those who have a lower LTV.
With a 100% LTV mortgage, there is more of a risk to a lender. As you are not providing a deposit, the lender will be offering you the full value of your property as a loan. You will therefore expect high-interest rates on this form of loan.
What is a 100% LTV Mortgage?
Due to your financial situation, you might be looking for a low deposit mortgage. There are certainly options available if you have been unable to save a deposit.
A 100% LTV mortgage is a loan taken out from a bank for the entire cost of the property. This is also known as a no-deposit mortgage.
For Example:
If your property is valued at £175,000, a 100% LTV mortgage means you would borrow the full £175,000 from a mortgage lender and you would not put any of your own money in.
Speak to Octagon Capital on 0333 414 1491 for mortgage rates at a range of different LTVs.
How Does A 100% LTV Mortgage Work?
100% LTV Mortgages are seen as a risk by banks and traditional lenders as you are no deposit is being offered. Therefore it is more challenging to find a provider who can offer a 100% LTV mortgage and those who do tend to have specific criteria for application approval.
Often you will be required to have a guarantor for your mortgage repayments. This means if you are unable to meet your repayments on time, a guarantor (usually a family member) will be required to make the payments.
Note this is a big financial commitment for your guarantor. If you are able to save even a small deposit, this could be a more desirable option and can help you access better interest rates.
What Is The Eligibility Criteria for a 100% LTV Mortgage?
There are a few criteria to meet to be eligible for a 100% LTV mortgage. These will be set by the lender and may involve some affordability checks.
The factors that will be considered for you to get a 100% LTV mortgage include:
- Your employment situation
- How stable your income is
- Your credit history
To check whether you meet the eligibility requirements it is advised to consult with a mortgage advisor.
Before applying for a 100% LTV mortgage it is essential that you are confident in your ability to repay your mortgage. There are ways to calculate how much your home will cost you in comparison to how much you earn and spend monthly.
What Are The Pros Of 100% LTV Mortgages?
There are a number of benefits of taking out a 100% LTV Mortgage, including:
- You are not required to have a deposit saved
- There is the potential for you to build equity over the duration of your mortgage
- You could potentially benefit from property value appreciation
What Are The Cons Of A 100% LTV Mortgage?
The are some cons to a 100% LTV Mortgage that you should consider. These include:
- There are fewer choice of lenders
- There will be a higher overall interest costs for the duration of the mortgage
- There may be stricter affordability assessments in place before getting approval
- You might be required to have a guarantor
Why Should I Choose Octagon Capital As My Mortgage Broker?
As an experienced mortgage broker, Octagon Capital can offer expert help in securing you the best rates in your area. We work with more than 100 lenders meaning we can match you with the perfect lender based on your financial situation.
It is free to apply and there is no obligation to proceed with your offer, but we hope that you choose us to get you started on your journey to owning a property. We only require some simple information from you – so get start started on your application today!
What Types Of 100% LTV Mortgage Are There?
There are various types of mortgages available that you may be offered by a lender. Some of the different types include:
- Fixed-rate mortgages, the interest rate for this type of mortgage will remain the same for a specified period
- Tracker mortgages, which follow an interest rate index set by the Bank of England
- Offset mortgages, this mortgage type offsets savings against the mortgage balance to reduce interest charges
- Variable-rate mortgages, where the interest rate can fluctuate
How Do I Repay My 100% LTV Mortgage?
Although there are usually various ways to repay your mortgage, a 100% LTV mortgage will be made as a repayment mortgage (an interest-only mortgage is not available).
This means you will make monthly repayments that consist of both a portion the original loan amount and the interest charged. As you progress through the mortgage term, your outstanding balance will decrease and you will eventually fully repay your mortgage.
What Happens If I Can’t Meet The Repayments For My 100% LTV Mortgage?
If you become aware you will struggle to meet your repayments on your 100% LTV mortgage, you must contact your lender immediately to avoid serious consequences such as having your home repossessed.
Your lender might be able to offer offer alternative options such as repayment restructuring, temporary payment breaks, or extending your mortgage term to reduce the monthly payments.
It is crucial before accepting an offer from a lender that you are confident you can afford the loan.
How To Apply With Octagon Capital
There is a quick and easy process to apply for 100% LTV Mortgages with Octagon Capital. Enter your details using our simple online form and you will hear from a member of our team to get you the best rates.
Discuss your options with a member of our dedicated team today. You can call us on 0333 414 1491 or email sales@octagoncapital.co.uk.
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
A maximum fee of 1% of the loan amount is payable – for example on a mortgage of £100,000 the fee would be £1,000, the exact fee will be dependent on your circumstances. For Bridging Finance where the net loan amount is £150,000 or below, the maximum fee charged is £1,995.
SPF Short Term Finance is a trading style of SPF Private Clients Limited which is authorised and regulated by the Financial Conduct Authority (FCA).