Mortgage - the no deposit mortgage

Yorkshire Building Society has announced the introduction of Mortgage, a no deposit mortgage that allows an extra 15% above the property value to be borrowed.

Whilst the obvious market for Mortgage would be first time buyers who may need more than 100% to purchase furnishings, or to pay stamp duty or legal fees, it's expected that home movers will also find the product useful. These customers may want to buy a bigger property that needs some attention or to consolidate other debts.

The no deposit mortgage allows you to borrow up to 115% LTV, has no application fee, or higher lending charge and is available for all house purchase customers.

It can be set up with an offset account with full functionality included and comes in variable and fixed rate versions, It is available on a capital and interest basis only, however.

The offset variable version charges 6.45% BoE base rate 0.95% for 5 years, then reverting to 7.40% SVR 7.6% APR.

The offset fixed rate version meanwhile charges 6.89% through September 30th 2012, then reverting to 7.40% SVR 7.7% APR.

Early repayment charges work out to 5% for years 1-3, 4% for year 4, 3% for year 5 for the variable rate version; 5% to September 30th 2010, 4% to September 30th 2011 and 3% to September 30th 2012, for the fixed rate version.

Minimum borrowing age is 21, minimum loan size - £120,000, maximum loan size - £330,000.

Any extra borrowing must be applied for at the time of mortgage application and is released on completion of the mortgage. This will be subject to 15% of the loan amount to a maximum if £30,000.

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2007-07-04 10:58:05 © Moneyextra.com