100% Mortgage = 100% of Property Price

[WarrenBuffet]

Hi,

At the moment i am looking at getting a 100% mortgage. The properties i am interested in cost around the 410k to 420k mark. I have 40k saved as a deposit.

If, for example, the house costs 420k and i get a 100% mortgage for 400k (I am a FTB) does that leave me with 20k (from deposit money) to pay solicitors fees, put some money into house etc.

Or if you get a mortgage for 100% does this have to be 100% of the purchase price of the house.

Thanks for any help,
Hope i made myself clear,
WB

 

[LDFerguson]

In the example you give, you could borrow up to 420K being 100% of the purchase price, assuming you qualify for this amount. You would have your 40K savings left over towards fees stuff for the house.

You can (and probably should) choose to borrow less, such as 400K. Strictly speaking this wouldn't be a 100% mortgage as you're borrowing 400 / 420 = ~95% but that's not terribly relevant.

100% mortgages are not fixed at 100% - if you qualify for 100% you can choose to borrow 98% or 96% etc.

Liam D Ferguson
www.yourfirstcastle.com