When you want to buy a house, in most cases you depend on a bank to help you by offering you a mortgage strong enough to allow you to do so. But, How to get 100% of the mortgage? It's possible?
If right now you are trying to find a house and get your mortgage at 100%, this topic interests you. Because yes, there are banks that can offer it to you if you meet the requirements. Shall we go over everything?
100% mortgages, what are they?
Have you ever heard of 100% mortgages? These are an option that some banks give you, also offered with the term mortgages without entry. And basically it is that, the possibility of financing the entire purchase of the home without having to put any type of savings.
They differ from the usual ones in that they cover the entire price of the home, unlike the others, which only lend 80% of the value of that property; You will have to put the remaining 20% ​​out of your pocket.
How to get 100% of the mortgage
If right now the sky has just opened for you and you have a solution to buy that house of your dreams, we must return you to earth. Not because it is impossible to get it, but because It's quite difficult to do it. But there are cases in which banks agree to give these mortgages, so, if you meet their requirements, you will surely have more opportunities.
You see, among the requirements that the bank is going to ask you for, it is obvious that one of the main ones is going to be demonstrate that you really have a stable job and an adequate income so that the bank can trust that you will be able to pay. You also need to have some work seniority and be up to date on credits, not have any or comply with the ones you have requested without problem.
In many cases they will ask you to contract a product with the entity such as home insurance, life insurance, a card... This is something they usually ask for when we are talking about a large amount of money.
Each bank will require a series of requirements, and listing them all would be impossible (because there are many banks), but we can give you some tricks that many use to have a better chance of accessing this mortgage option:
Hire a mortgage broker
He is a professional who will know the banks that give 100% mortgages (even without advertising them) and who has experience in the real estate sector. However, keep in mind that It does not guarantee that you can get one, In addition, it represents an expense for your work.
Request a public guarantee
This is something that is only offered in some Autonomous Communities. If you can meet the requirements, this endorsement is capable of cover up to 20% of the mortgage, and the rest could be financed through traditional bank mortgages.
Buy an apartment from a bank
That banks have floors is a reality. They are looking forward to selling them too. So if you look at an apartment and it belongs to a bank you could have more chances of them giving you a 100% mortgage so you can buy it from them.
In fact, sometimes they can offer even more beneficial conditions. It's just a matter of you asking.
Characteristics of a 100% mortgage
And now let's talk about what they give you with that 100% mortgage. Because beyond the fact that it covers the entire price of the home, there is a small print that will sometimes stop you.
To begin with, you should know that these types of mortgages usually have a interest rates that are higher than normal, also because the bank is assuming more risk. Besides, amortization periods are longer, unless you can guarantee that you can return it sooner.
Another of the requirements that characterize the 100% mortgage is the need to have a guarantee. They don't always ask for it, because it will depend on the profile submitting the request, but in most cases it does happen.
What will be the fee to get 100% of the mortgage?
Although you are going to negotiate with the bank when you want to return all the money (with interest included), the truth is that the bank itself establishes that The 100% mortgage payment should never exceed 35% of income. This way it ensures that you can pay it and that it does not pose a problem for your ability to survive (and that this puts the monthly mortgage payment at risk).
Which banks and intermediaries offer 100% mortgages
Now, to finish, we would like to offer you a small list of banks or mortgage intermediaries that can offer this type of mortgages. We cannot guarantee that they will grant it to you, but at least you have the opportunity.
Among the intermediaries we highlight Housfy, Creditoh, Grocasa or Gestcredit. They are well-known companies to a greater or lesser extent. Of course, we remind you that you will have to pay for their services, and that implies between one and five percent of the value of the mortgage.
In the case of banks, where you could find out about this mortgage option are Bankinter, Deutsche bank and Santander. As we told you before, there may be other banks that, although they do not offer it openly, can grant 100% mortgages, so it doesn't hurt to ask (especially if none of these options is your bank).
100% mortgage risks
Now that you know how to get 100% of the mortgage, you should try to think about the risks to which you are exposing yourself. One of the main ones is the fact that you are going to borrow a fairly high economic amount. That means that if at any point you can't pay, the bank could take the house, and in the end you would lose everything you've been fighting for. And this house, being owned by the bank, could be sold.
Another risk you face is that the property you purchase will drop in value. For example, imagine that you buy it for 100.000 euros. After a while, you decide to sell it, but the real estate market has fallen, and now your home is worth only 80.000. And your mortgage is 90.000. This implies that, no matter how much you want to ask for that property, it will not be enough to cover the capital you owe to the bank. And not only that, but you won't gain anything.
Now you know how to get 100% of the mortgage and what you are facing. Would you continue with this mortgage option if it were offered to you?