Probably the most significant risk involved is the risk of negative equity. This is where you owe to your mortgage lender an amount greater than your property is actually worth; for example, if you took out a 100% mortgage and purchased a flat worth £225,000, but the value of the property then dropped to £190,000, you’d still owe the bank £225,000. This can cause serious issues if you then find yourself needing to move, or remortgage. The risk of negative equity will diminish as time passes and you pay off more and more of your mortgage, but it’s important to bear in mind that in the first few years the risk is significant.