How To Get A No Deposit Mortgage: In a recent video, I discuss the return of 100% mortgages. In the video, I break down how these no deposit mortgages work, who qualifies, and the hidden catches. I also tell you my thoughts on whether this is the golden opportunity you've been waiting for, or a repeat of 2008's property crash!
If you want to hear my opinion on no deposit mortgages, please watch the full video at the top of this page. You can also find it on my YouTube channel. If you are considering taking out a 100% mortgage, watch this video first!
Two firms are now offering 100% mortgages, April Mortgages and Gable Mortgages. 100% mortgages, also known as no deposit mortgages, allow a borrower to get a mortgage for the full value of the property they are buying. They were once a very popular option, but disappeared from the market due to the 2008 property crash. Now they are back!
No deposit mortgages were seen as irresponsible, because they led some borrowers into negative equity. Negative equity is where the debt on the property is higher than its value. Because 100% mortgages don’t require a deposit, a relatively small drop in the value of the property can lead to this.
On the other hand, no deposit mortgages allowed people to get on the property ladder when they might otherwise have not had the opportunity to do so. The key to using 100% mortgages responsibly is to choose a property carefully, and never borrow more than you are able to pay back comfortably.
If you’ve considered all the options and decided a 100% mortgage is right for you, I’ll explain exactly how to secure one! In this article, I will give you an easy 3-step guide on how to get a no deposit mortgage. By the end of this article, you will know exactly how to apply for a 100% mortgage and secure your new home!
A lot of people want to get on the property ladder, and a no deposit mortgage could help them do so. This guide could really help a lot of people, but I need your help to reach them. Please would you consider sharing this article on your social media pages? Together, we can help people buy their first home!
1. How To Get A No Deposit Mortgage: Eligibility!
As with any mortgage product, you need to meet certain eligibility criteria. Firms offering 100% mortgages take on more risk. They, therefore, may be stricter when it comes to things such as credit history.
In the case of April Mortgages, as well as having a clean credit history, they say you must be:
a UK resident
under 70 (and not older than 80 at the end of the mortgage)
with a minimum income of £24,000 (as a household)
looking to buy or remortgage a house (that's your main residence) that's valued at more than £75,000…
They also don’t accept flats or new build properties.
2. How To Get A No Deposit Mortgage: Understand The Terms!
It is important to understand what you are signing up for. April Mortgages, for example, requires you to fix the interest rate for 10 years.
I think this is because they see interest rates falling in the future. If interest rates do fall substantially, you may come to find that this is a bad deal in the long term. Make sure you understand the terms of your mortgage and make an informed decision.
3. How To Get A No Deposit Mortgage: Find A Broker!
To get a mortgage from April Mortgages or Gable Mortgages, you will need to go through a broker. Neither of the firms accept direct applications from members of the public. April Mortgages has a list of brokers who work with them on their website.
From How To Get A No Deposit Mortgage To No Money Down Property Investment!
Now that you know how to get a no deposit mortgage for your own home, it's time to learn how to invest in property with little or no money down. Join me at my next introductory training event!
We have different courses throughout the year, each teaching different things. Here is a sample of what you could learn on one of our popular introductory courses:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets aren’t expensive, and you can get yours here. If you are ready to take action, I hope to see you very soon! If you can’t make it in person, we also have virtual events too!
