100% mortgage. Don’t panic, Don’t panic.

100% mortgage. Don’t panic, Don’t panic.

100% mortgage. Don’t panic, Don’t panic.


A few months ago we wrote a blog about the bank of mum and dad. We looked at a worrying trend where a huge amount of first time buyers were relying on their mum and dad or other close relatives to provide the cold hard cash for their deposit. With the cost of living just rocketing and wages barely keeping pace, young people are forced to rely on their wealthier family members to get their toe on the property ladder.

Now I hear you ask, what does this have to do with the 100% mortgage. Well all in good time. In the last week it was reported that Lloyds have released a 100% mortgage. So no deposit, the mortgage would cover the full amount of the property. You are not even buying a house, the bank (or lender) is and you are living in it and you are paying rent. Well you will own it after so many years. This was how it was reported on the headlines. 100% MORTGAGE is back!!!!. Very exclamatory.

When you looked into it more you realised the mortgage that was on offer was not quite 100% mortgage. The BBC took a more balanced view on the new mortgage.

“…However, a new mortgage launched by Lloyds, aimed at first-time buyers, actually requires a 10% deposit – but instead the money is put into a three-year fixed savings account by a family member.

Experts say that the deal is competitively priced and may grab the attention of young potential buyers who have the help of the Bank of Mum and Dad.”

Find the full article here

(you are now departing from the regulatory website, Coleshill Mortgage Services or Quilter Group are responsible for the accuracy for the linked site).

The sad thing is that it has come to this. Though this is not a new product, it shows that lenders are looking at any way they can encourage people to take out a mortgage. And that must be relied on the bank of mum and dad.

As always if you are looking to get on the property ladder make sure you speak to someone you trust and get the right advice for your situation. And if you need help then so be it. A lot of people are doing the same.



Your home may be repossessed if you do not keep up repayments on your mortgage.