The loan is for purchase only and is based on a variable rate, currently 5.84 per cent. The minimum loan is £35,000, and the maximum loan is £100,000.
Redemption penalties are based on three months’ gross interest in the first year, two months’ in the second year,and one month in the third year, with one months’ notice or interest in lieu thereafter.
Brokers can expect a procuration fee of 0.5 per cent.
Ian Balfour, director of marketing at Solent Mortgage Services (SMS) said: "The need for 100 per cent mortgage lending is on the increase as the mortgage market responds to both borrower demand and calls from the FSA last summer for this type of loan to be made more widely available. Some borrowers are simply not in a position, largely because of rising house prices, to provide a substantial deposit on the property they wish to buy and 100 per cent mortgages are ideal in supplying this part of the market."
