100% mortgages 'good entry to market'

03-Mar-2008

100 per cent-plus mortgages are an effective way for first-time buyers to get into the market, an expert has said, although they may have to move fast or wait to secure this kind of deal.

Many lenders are currently withdrawing this king of mortgage, which offered borrowers more then the total cost of their property, due to the current climate within the market.

Moneysupermarket has said that this is unlucky for first-timer buyers as most borrowers and lenders were aware of and responsible about the risks that went with such a large loan.

Commenting on the controversy that surrounded this kind of mortgage when it was first introduced, Louise Cuming, head of mortgages at moneysupermarket.com, said: "If you ask some of the lenders, they'll say that they're damned when they do and damned when they don't!

"When they bought them out, everybody jumped on them and said they were controversial; and now they've taken them away we're all saying: 'Heaven help the poor first-time buyers.'"

She added that 100 per cent may reappear in the future, but that it is unlikely to be in the next 12 months.

95% mortgage deals 'still available' Market 'has opportunities for first-time buyers'

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