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Guide to Mortgage Products Without a Deposit

A few years ago there was such a product which offered a mortgage without a deposit (known then as the "100% mortgage"). Now, however, there aren't any of these products available. There are a few 95% or 80% mortgage deals, but you still need to put down some form of deposit.

Unfortunately, even with these smaller deposit mortgages, you're likely to incur higher charges and longer terms. The deposit takes a huge sum off your capital for the mortgage, so the less deposit you pay means the more you pay back and, consequently, the higher your monthly payments and a more brutal term.

The house market has had a few rough turns in the past few years, particularly during the recession, and is still recovering. If you really can't afford a mortgage at the moment because you don't have a deposit you should try and at least wait a few years - whilst saving in the mean time, of course - and apply for a mortgage later on. If you're willing to meet higher fees and monthly repayments then you shouldn't have to save too long, but consider your situation; if your current income doesn't allow any room for savings towards a deposit, can you really afford a mortgage with higher fees than usual?

 

Government Schemes

If you're living in a council home and want to buy your house, or are living off a low wage, try looking to your local authority for some help towards a mortgage with no deposit. They currently have quite a few varying schemes, especially for first time buyers, to help towards the cost of a deposit or provide specialist policies to protect you and allow you to buy a home. Check out the Direct.gov.uk website if you think you might be eligible for any schemes.

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