Expert Mortgage Advice & No Deposit Mortgage Deals Suitable For You

When applying for a mortgage you will need to show that you are able to keep up with the monthly repayments. A mortgage is like any other type of loan, your ability to repay it and your credit history will play a part in whether a lender will approve your application.
As well as this, you normally would need to put down a deposit, which can range from 5%-20%. Finding a 100% mortgage can be challenging, and even if you have an excellent credit history, you will most likely need at least a 5% deposit in this case.

This does not mean it is impossible to get a no deposit mortgage with bad credit, but in many cases it can be very unlikely. If providers don’t have any evidence presented to them, in the form of a deposit or good credit history as to how likely you are to repay the loan, there is no motivation for them to offer you a mortgage. Other factors can influence their decision though, including your income and the size of the mortgage.

If you are looking for the right mortgage deal to suit your financial situation, contact our advisers at Finance Advice Centre. Our team has extensive experience in helping potential borrowers find the best deals and providers to put them in the best position for their loan application to be successful.

As previously mentioned it is possible to get a mortgage without a deposit, but this is extremely rare in the UK, especially if you have bad credit. The only 100% mortgages that are currently available are guarantor mortgages. This typically requires a family member who owns their own property or a large amount of savings to be named on your mortgage as well. However, this puts their home or money at risk if you fail to make your repayments on time.

New build developer loans

In some circumstances, property developers offer to loan you enough for a deposit when you purchase a new home that they have built. For example, the housing developer might lend you 20% of the property value and ask to be repaid in 15 years. However, you will need to be able to afford both your mortgage repayments and the property developer’s loan as well, which can be highly expensive and impossible for many potential buyers.

Even if you can’t get a no deposit mortgage with bad credit, or with good credit, there are a lot of ways to quickly get on the property ladder and buy a house with a low deposit.

Putting together a deposit

You can build up your deposit by:

• Using any existing savings
• Saving money each month where you can
• Borrowing money from family or friends
• Using money that was given to you as a gift or inheritance

Putting money aside regularly each month could work out better than paying into a savings account whenever you can, as it reduces the temptation of spending what you have saved. You can increase how much you save each month by:

• Sticking to a budget
• Reducing your spending where you can
• Spending less on rent
• Getting a lifetime ISA – these pay tax free interest and a 25% bonus of up to £1,000 per year from the government. The bonus is paid to you to put towards the deposit for your first home

Speaking to a professional mortgage adviser like our team at Finance Advice Centre will help to give you practical advice on the best route for you to successfully secure a mortgage deal. We can also help guide you through the application process to ensure you provide all the right information and present yourself as an appealing prospective borrower to lenders.

As a mortgage is secured against your property, it may be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.