This type of mortgage can be a useful stepping stone onto the property ladder for someone who simply can not save for a deposit.

A 100% mortgage is deemed by the lender to be quite risky, so the costs can be quite high. These costs can involve a high Mortgage Indemnity Guarantee fee or a smaller discount period on a variable rate deal. The mortgage would not offer any cashback or repaying of costs but you may be able to tie in your costs with your loan amount, so could be in a position to move without paying any costs up front. This does mean that you will be paying interest on any costs, which is why this is not a cost effective way of taking out a mortgage.

If you take out a 100% mortgage, it is usual to wait until you are in a stronger position financially, with some equity in your property and outside any redemption fee period, and to then move onto a more cost effective mortgage.

Other areas to think about: professional indemnity insurance, warranty and indemnity, double indemnity