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100 Percent Mortgage | Mortgages News

100 Percent Mortgage



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The 100 percent mortgage idea has been a relatively new addition to a marketplace that is already very well populated with various different mortgage products.

Unlike a lot of the other products that juggle the interest rates or allow for various combinations of paying different aspects of the amount owing at different times, ask the 100 percent mortgage idea is actually very straightforward.

Traditionally, pharm the concept of mortgage loans revolved around the idea that you would pay a deposit. This serves two purposes. It proves some sort of previously established saving and solvency pattern. It also reduces the amount owing which has the twin benefits of putting less pressure on the borrower and reducing the risk of the financial institution giving the loan.

In the case of the 100 percent mortgage the idea of the deposit is done away with this raises the risk. This allows the loan applicant to borrow more. In theory there are supposed to be more stringent checks on the repayment ability of the borrower but this is rarely the case in practice. In reality, the primary use of this device is simply to allow people to borrow more.