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 https://www.major-financial.co.uk/contact and we’ll get back to you promptly.
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