100% mortgages

Before the recession, 100% mortgages were pretty common. They were particularly popular with first-time buyers who were struggling to get a deposit together to get onto the property ladder as these deals allowed them to borrow 100% of a property's value.

Lenders were happy to do this in a rising market because as house prices rose, the loan-to-value (LTV) would fall and lenders wouldn't be in danger of losing money if the property became repossessed.

Some lenders even offered 125% mortgages, allowing people to borrow up to 125% of the value of the property so they had extra money to pay for fees or for doing up their home.

The credit crunch, however, saw house prices fall dramatically and many homeowners have found themselves in negative equity where the amount they owe on the mortgage is higher than the value of their home.

As a result, lenders have tightened their lending criteria and 100% mortgages have quickly vanished from the market. Lenders have become increasingly reluctant to lend to borrowers who only have a small deposit.

That said, a handful of lenders are now starting to offer100% mortgages again although these are few and far between. What's more, you'll generally find that with these deals, relatives will need to provide a guarantee secured against their own property for a set amount or will need to contribute a certain percentage of the property's value.