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Getting a Mortgage with No Deposit Becoming More Difficult

In the current economic climate, getting a mortgage with no deposit available is more difficult than ever. However, it is also harder than ever to save up a decent deposit, particularly with interest rates being so low.

There are some companies around that offer to obtain 100% mortgages for people with no deposit available. However, the rates offered on these mortgages are likely to far exceed the usual mortgage rates available.

If you are looking to apply for a mortgage through a bank or building society, you will almost certainly find that there are no 100% mortgages available at the moment.  If you have an good credit rating and a stable income there are some 95% mortgages now available on the market and several at 90%.

An option to enable you to take advantage of these mortgages is to borrow the deposit, providing of course you are able to repay this money on top of your mortgage repayments.  Some people turn to credit cards, but this can be a very expensive method of borrowing. If you qualify for a bank loan, this would probably be a better option. Borrowing from family is another possibility, although this can sometimes lead to a different set of problems entirely.

If you have no way to borrow the money, or cannot afford the extra repayments, then this means you will need find a way to raise the money instead - for example by taking a second job. If all else fails, look at ways to reduce your outgoings and put your plans to buy a property on hold until you have managed to save enough deposit.

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