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  • Writer's pictureLucy Baldwin

Breaking Free from Renting: A Guide to 100% Mortgages for Tenants

As a tenant, getting onto the property ladder can seem like an impossible dream. After all, saving up for a deposit while also covering the cost of rent and bills can be a real challenge. However, there is some good news on the horizon – tenants may now be eligible for 100% mortgages!

So, what exactly is a 100% mortgage for tenants? Essentially, it is a type of mortgage product that allows tenants to borrow the full amount of the purchase price of a property, without the need for a deposit. This can be a lifeline for those who are struggling to save up a large sum of money to put towards a deposit, as it removes this significant financial barrier to getting onto the property ladder.

There are a few things to bear in mind if you are considering a 100% mortgage as a tenant. Firstly, these types of products are typically only available to first-time buyers, so if you have owned a property before, you will not be eligible. Additionally, lenders will typically have strict criteria that you must meet in order to qualify for a 100% mortgage. This may include factors such as a good credit score, a stable income, and evidence of a track record of paying bills and debts on time.

It's also important to note that 100% mortgages for tenants may come with higher interest rates than other mortgage products, as they carry a higher level of risk for the lender.

Key points to note:

  • The same names on the tenancy agreement as on the mortgage application.

  • Clean and clear credit report.

  • Evidence of a good track record of rental history for at least 12 months.

  • The lending scheme is not available for new build flats.

However, despite these potential drawbacks, 100% mortgages for tenants can be an excellent option for those who are struggling to save up a deposit. They offer a way for renters to break free from the rental cycle and start building equity in a property of their own, without having to wait years to save up the funds for a deposit.

If you are interested in exploring 100% mortgages for tenants further, or to arrange your consultation with Major Financial Services, please call us today at 0161 706 0849 or use our online contact form and we’ll get back to you promptly.

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