You’ve probably heard about 100% mortgages, no deposit or zero deposit mortgages, but how do you know if you are eligible or whether it’s even realistic on the property you’ve got in mind? 100% Track Record mortgages are designed with renters in mind, helping you get out of the renting-rut, and onto the property ladder.
When buying a property, it can be overwhelming when it comes to getting the right mortgage product for you. Perhaps you’re struggling to raise a deposit and you can’t see the light at the end of the tunnel, or you’ve got savings, but you’re not sure if it’s quite enough to secure your dream property. If this sounds like you, then a 100% mortgage could be a good option.
With Galliard Homes, you will be supported not only by our in-house sales team, but by the experts at Finaker Finance, our preferred mortgage advisors who will help you every step of the way. From assessing your affordability to matching you with a suitable mortgage product, Finaker Finance’s expert team will ensure your mortgage is right for you.
What is a 100% Mortgage?
A 100% mortgage is exactly what it says on the tin: you can borrow 100% of the purchase price, without the need for a deposit. But is it really that easy? Well, it can be. As with any mortgage product, there are a number of criteria that you must meet to be eligible.
Typically aimed at first-time buyers, a Track Record 100% mortgage uses your ‘track record’ of rent payments to work out your mortgage affordability. Your deposit must be less than 5% if you have one, but having a deposit is not necessary for this type of borrowing.
What are the criteria for a Track Record mortgage?
Let’s break it down:
- You must have been renting and paying household bills for a minimum of 12 consecutive months within an 18 month period.
- Your deposit must be less than 5%, and can be as low as zero.
- You cannot be a current homeowner, or have been a homeowner in the UK within the last three years.
- You must be aged 21 of over and want to borrow up to a maximum of £600,000.
- You must have no missed credit or debt commitments within the last 6 months.
- At least one applicant must be a UK national or have Indefinite Leave to Remain.
Is a zero deposit mortgage right for me?
As with any financial commitment, there are positives and negatives that come with it, and it might not be the right mortgage choice for you.
Advantages of a Track Record Mortgage
- You do not need a deposit to apply.
- You’ll have peace of mind that your interest rate is fixed for five years, meaning your rate will stay the same during this period and you know your monthly repayments.
- Up to four applicants can apply.
Disadvantages of a Track Record Mortgage
- The maximum age at the end of your mortgage term is 75, so depending on your age when you apply and the term of your mortgage, there may be some restrictions on the amount you can borrow.
- The fixed interest rate is typically higher than the rate on a traditional mortgage product.
- As you have none, or very little downpayment, there could be a higher risk of falling into negative equity.
- The amount you can borrow will be based on your rental payments, therefore you might not be able to borrow as much as you need.
100% Mortgages at Neptune Wharf
100% track record mortgages are available on selected properties at Neptune Wharf, SE8, subject to eligibility criteria. Neptune Wharf is an all-new vibrant community nestled within trendy Deptford, cocooned by 23-acres of open green space and on the doorstep of SE8's vibrant bars, restaurants and thriving cafe culture. Located in Zone 2, residents can enjoy all the perks of London living, without the huge price tag. Take advantage of our offers and incentives available at this exciting development, alongside huge discounts of up to £135,000.
Available from £375,000. Explore Neptune Wharf here.
If you’re still not sure if a 100% Track Record Mortgage is right for you, give us a call today and our team, along with Finaker Finance will check your eligibility and talk through your options.
Get in touch on 020 3409 2270 or email sales@galliardhomes.com for more information.
Your home may be repossessed if you do not keep up repayments on your mortgage. Terms, conditions and eligibility criteria apply.
