Can I Get A 100% Mortgage?
In the current economic climate, people are asking, where can I get a 100% mortgage? This question is a bit like a piece of string and needs to be quantified, as it is too open and not very factual. There are a whole range of factors that will influence lending, not just the type of mortgage, e.g. 100 percent mortgages.
Things to consider include, where the property is located, for example an underpriced prime property in a top location that is worth 500k, if available for 400k, a bank may well consider writing a loan for this, since there is a margin in the property for a 20% drop in the property prices before it goes into negative equity. Plus being in a prime location, over time the value is likely to increase and add value to the mortgage, so the risk in this instance is minimal for 100% mortgages.
On the other end of the spectrum, if a property is priced at 100k in an area that is less popular and slower to sell, due to less demand, if the market takes a dive and the house value falls, then the mortgager may only be able to recoup 90k from the 100k if they can find a buyer, and so negative equity loss sets in. Or if the house is overpriced, the same thing can happen, and with money tight, the banks will not lend to risky ventures right now.
This is one aspect to consider when you are thinking about where you can get a 100% mortgage.
