Answered on 2 February 2019 by Nick Morrey
Is there still a 100% mortgage?
Unless you are buying on one of the government home buyer initiatives there are no 100% mortgage available any more. The minimum deposit you will need is 5% and then depending on the scheme you are on your parent's may also have to put down savings of 20% or accept a charge being secured on their own home.
The current economic climate has led lenders to restrict how much they will lend against value and we are only just beginning to see more of them launch 90% LTV products.
It may well be possible to change your current mortgage to a buy-to-let. Whether you can do this with your existing lender will depend on if they offer buy-to-let mortgages, it is very possible you will have to consider remortgaging to a new lender.
Depending on how much equity you have in your existing property it may well be possible to raise the deposit for your new residential property on this. Buy-to-let mortgages are available up to 75% LTV with one lender offering 80%. Whether or not you are able to get one will depend in the main on the suitability of your property for letting and the anticipated rental income you can expect. Expect the rent, based on a 6 month Assured Shorthold Tenancy, to have to cover 125% of the monthly mortgage payment.
Guarantors are usually used where the applicant can not afford the mortgage they require, rather than making up for a lack of deposit. It can be possible to arrange a mortgage based on your salary alone and so it is only the deposit that is of concern.
I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and one of our consultants should be able to advise you accordingly.
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