Aimed at people who do not have an agreement, the 110 percent real estate loan makes it possible to finance the purchase of the property as well as the various costs that will arise.
110 percent mortgage principle
When a borrower applies for a home loan, the bank will quickly ask if the borrower has a personal contribution to add to the financing. This question is not trivial since the personal contribution makes it possible to take charge of the costs which will intervene in the request for mortgage. These various costs are quite simply real estate agency fees, administrative fees, warranty fees and notary fees. Simply, all the borrowers who aspire to buy a property do not necessarily have personal contribution to add to the financing, it is for this reason that the mortgage exists at 110 percent.
The 110 percent home loan is quite simply a financing which is offered to borrowers without contribution and which makes it possible to take charge of the amount of the real estate to buy as well as various expenses. This allows a household to access the property without having to pay a single euro from their pocket at the time of subscription.
Who is the 110% mortgage loan for?
The 110 percent mortgage is particularly suitable for young borrowers, a young couple or a single borrower starting their working life has not necessarily had the capacity and the time to be able to save, that is to say money aside to plan a real estate purchase. With attractive loan conditions but also attractive home ownership systems, young borrowers prefer to buy now to access property.
The young borrower is not the only target of the 110 percent mortgage, this financing also interests individual and professional investors. Households wishing to buy a second home or real estate for rental purposes will find themselves in the same situation, that is to say without making any contribution in their home loans.
Finally, some people may find themselves with the desire to access property and without having any personal contribution, this is for example the case of people who have recently divorced or who are separated from their spouse. Other life accidents can also lead a household to use the personal contribution to meet a specific need, thus forcing them to turn to the mortgage at 110 percent.
Who offers 110% mortgage?
Almost all banks on the market are able to offer mortgage loans at 110 percent. However, the banks are rather fragile with the idea of granting a mortgage without contribution. Not all have this restrictive vision and some banks will offer more attractive financing offers than others. It is therefore advisable to use an online mortgage loan simulator to specify the amount of the property purchase, which will allow you to approach the various banking establishments in order to obtain your mortgage at 110 percent.
A borrower with sufficient and above all reassuring repayment capacity will be able to obtain financing without too much difficulty. The home loan comparator allows you to quickly identify attractive offers and even be able to negotiate the best rates of the moment.