top 100 percent mortgage

If you can not raise a sufficient deposit for your purchase, then you might have to look at a the top 100 percent mortgage. With these, the bank will lend you the full value of your property. More dangerously, especially given the fact that house prices have dropped recently, some lenders may lend more than the value of your property.

With these mortgages you will be paying a higher interest rate than if you were able to put up a deposit. In a couple of years it may be worth looking to remortgage, especially if you can reduce the mortgage by the equivalent of a deposit or the property has increased sufficiently in value. But if property prices continue to fall, this might not be possible so should not be depended upon.