0% Mortgage

A 0% mortgage is a type of loan where the borrower pays no deposit or up to 5% on the borrowed amount.

Who is eligible for a 0% mortgage?

To be eligible for a 0% mortgage, you would generally need to meet the following requirements:

1. First-time buyer status: Each applicant must be a first-time buyer, meaning they have not owned a property previously. This requirement is often defined as not having a current or previous interest in a residential property, either individually or jointly.
2. Age requirement: Each applicant must be 21 years old or above.
3. Deposit: You must have a deposit of less than 5% of the property’s purchase price. This means you are seeking a mortgage that covers the majority of the property’s value.
4. Good credit history: Each applicant should have no missed payments on debts or credit commitments, such as mobile phone bills, in the last six months. Lenders typically review credit reports to assess the creditworthiness of applicants.
5. Loan amount: You can borrow up to £600,000. This amount represents the maximum loan value that you can obtain through the 0% mortgage program.
6. Household-to-household criteria: You need to meet the specific criteria set forth by the program regarding the composition of your household. These criteria may include factors such as income, dependents, and other household members.
7. Exclusion of new build flats: The program may exclude new build flats from eligibility. This means that the 0% mortgage may only be available for certain types of properties, such as houses or other types of dwellings.
8. Rental and bill payment history: You must provide proof of having paid at least 12 months’ rent in a row during the last 18 months. Additionally, you should demonstrate a track record of paying all household bills, such as utility bills and council tax, for at least 12 months in a row during the last 18 months.

It’s important to note that the specific eligibility criteria and requirements can vary depending on the program or lender offering the 0% mortgage