Select from the following:
Purchasing a house?
Remortgaging?
First time buyers?
Buy to Let?
Releasing equity in your home?
Buying your council house?
Shared Ownership?
Buying a holiday home?
Consolidating your debts?
We can change your life
Even if …
You have a poor credit rating ...
Or ...
You can't prove your income
Get a quote now and get £50 cashback from your conveyancing costs!*
The decline and fall of the 100% mortgage
- Published 04/8/2008
- Buying a home
- Unrated
Abbey have announced that they shall withdraw all of their 100% loan to value mortgage products tonight. From tomorrow, prospective borrowers shall be required to provide a deposit if they are to buy a property or refinance their home.
This is particularly bad news for first time buyers. Figures in The Times today indicate that if you were buying a property valued at £148,000 you would have to provide a deposit of £7,500. With conveyancing, stamp duty, valuation and lender's arrangement fee also taken into account, this figure would be well above £10,000.
High loan to value mortgages are now only available to professionals via Bristol & West, Standard Life and Scottish Widows. Indeed, some lenders, such as Alliance & Leicester, and Britannia, now require a minimum deposit of 10 per cent.
It is quite a fall from grace for high loan to value products. In the last few years they have become prevalent as house prices have soared and lenders have had to innovate to keep mortgages 'affordable'. As early as last year, you could get a 100% mortgage from over a third of UK lenders.
However, since last summer more than 70 per cent of mortgage deals have disappeared, with the bulk of them being 'high risk' products such as 100%+ mortgages.
This is particularly bad news for first time buyers. Figures in The Times today indicate that if you were buying a property valued at £148,000 you would have to provide a deposit of £7,500. With conveyancing, stamp duty, valuation and lender's arrangement fee also taken into account, this figure would be well above £10,000.
High loan to value mortgages are now only available to professionals via Bristol & West, Standard Life and Scottish Widows. Indeed, some lenders, such as Alliance & Leicester, and Britannia, now require a minimum deposit of 10 per cent.
It is quite a fall from grace for high loan to value products. In the last few years they have become prevalent as house prices have soared and lenders have had to innovate to keep mortgages 'affordable'. As early as last year, you could get a 100% mortgage from over a third of UK lenders.
However, since last summer more than 70 per cent of mortgage deals have disappeared, with the bulk of them being 'high risk' products such as 100%+ mortgages.