100 Percent Mortgage

This is a very useful type of mortgage. It can be used as a stepping stone on to the, increasingly harder to get on, property ladder. It is targetted at people that don't have the option save for a deposit. Unfortunately these 100 percent mortgages are high in price because of the risk taken on by the lender.

Cashback wouldn't be available on this mortgage, it is likely that you'll have to tie in your loan with the costs involved. You might be able to move out but not have to pay the costs up-front. Remember that this will mean that your costs will have interest added.

We advise that you wait until you are financially in a much more secure position before taking out this type of mortgage. Get some equity already invested in your property. Make sure you're outside any period of redemption fees. This will put you into good steading for a better cost-effective mortgage.