Ideally, traditional mortgage lenders want new homebuyers to have a 20% down payment when purchasing a new home. Thus, if purchasing a $200,000 home, you should be prepared to have $40,000 as a down payment.

Unfortunately, many people do not have this kind of money lying around. For this matter, private mortgage insurance (PMI) was created as a way for mortgage companies to recoup their money if a homeowner defaults on the loan. There are various loans available to assist people with down payments. In some instances, homeowners can obtain 100 mortgages, and avoid PMI.

100 mortgages enable you to borrow the total value of the property, and put down no deposit. This could just tip the balance in favour of getting the property you want, rather than having to settle for second best.

Most providers offering 100 mortgages will insist on a pristine credit rating and you may be charged a higher interest rate for a 100% mortgage, meaning that you will be paying more each month than you would with a traditional mortgage. You may have to agree to keep the mortgage for a minimum number of years. Products for 100% mortgages are usually available in a wide range such as fixed, tracker and variable rate deals. If the vendor requires a deposit, then it will come from the lender and the solicitor will arrange to draw down the deposit from the lender when they legally require it.

For 100% mortgages lenders will typically lend up to five times a single income or four times joint incomes. The figures will vary from lender to lender based on how much you earn and number of financial dependants. Your credit score is also crucial. In the best circumstances you will probably be able to borrow up to five times joint income, but this sort of deal is usually reserved for applicants with £100,000 of income and who can clearly demonstrate affordability and have a high credit score.

To get on the property ladder without having to save for a deposit 100% mortgages are ideal.