100 Best Mortgages

100 Best Mortgages

100 mortgages were a common occurrence a few years ago. They allowed you the buyer to borrow 100% of the property purchase price, which meant that you didnt have to wait and save up for a deposit. So rather than spending years saving each month for a deposit plus funds in order to furnish and buy a property, it meant buyers could buy properties sooner.

Unfortunately times have changed and 100 mortgages and not available any more. Since the credit crunch lenders have withdrawn all their 100 mortgages and now insist that borrowers put in a deposit. Some lenders pre-credit crunch like Northern Rock even lent up to 125% of the purchase price, which seems a bit crazy now but at the time it was a very popular mortgage and many would say is one of the main reasons the bank is no longer around.

The highest mortgage available now is the 95% mortgage, which allows borrowers to borrow up to 95% of the purchase price as long as they are able to put in the other 5%. Even at this level there isnt a lot of choice, it is only when you start looking at 10% deposits and lower that even more lenders come into play.

When buying a property as an investment then the most common way to purchase is by using a buy to let mortgage. It is therefore important that you get the best buy to let mortgage rates possible. Buy to let mortgage rates are not the only figures you need to look at when choosing a mortgage, you also need to take into account the mortgage fees that are associated with any buy to let mortgage rates. Firstly you have the valuation fee which is paid to a RICs surveyor to come out to the property in order to give it a capital value and rental value.

Secondly the amount of arrangement fees a lender charges can also have an impact on the how good the buy to let mortgage rates are. Lenders usually charge an arrangement fee as either a flat amount or a percentage of the loan. For example on a mortgage of 100,000 if it was a 2.5% arrangement fee then that would equate to 2,500. As this amount can often be added to the loan it is important you calculate your buy to let mortgage rates based on the increased amount which in this example would be 102,500.