100% Mortgages

Posted on 23 April 2010 by richard morgan

Is there still a 100% mortgage? I am currently looking to move to a bigger house, but already have a mortgage. Can I swap my current one to a buy to let in order to get my new mortgage? How can I raise the 10% deposit?


Unless you are buying on one of the Government home buyer initiatives there are no 100% mortgage available any more. 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.

I recommend that you speak to an independent mortgage broker about your requirements.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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