Mortgages Direct can provide advice on 100% Mortgages. These allow you to purchase a property WITHOUT having to provide any deposit.

"I am buying for the first time, do I need to put a deposit down?"

It is up to you. You can get  100% (and 100% plus) mortgages (subject to you meeting the necessary criteria), which means that you are not required to put down a deposit. Some lenders will allow you to add legal fees and stamp duty to your loan, or even take extra money to effect home improvements or repay debt.  Buyer Beware: remember that by adding monies to your loan, you are increasing the loan you have to repay.

”Does this mean I will borrow more than the value of the property?"

Yes. This may cause a problem if you wished to sell the property soon after the mortgage started, as the outstanding loan would be more than the property value. However, most 100% mortgages are not short term, giving the borrower time to start to repay the loan, and if the property increases in value, this creates equity in the property and reduce the loan to value..

What about if I have existing unsecured debts such as visa or personal loans?

It may be possible to borrow 25% of the property value - this allows you to repay debts, pay stamp duty, legal fees and other costs. It also allows you arrange home improvements, for example. Again, PLEASE REMEMBER you are increasing the debt against the property AND the term the debts is being paid over. For example, a loan with three years left on it would be repaid in that timescale – by adding it to your mortgage you are paying the debt and interest over say 25 years! This is a lot more expensive.

Features of 100% Mortgages:

Longer terms to keep payments low
Up to 125% Lending - to pay fees and consolidate debts
Fixed and Discount Rates