100% Mortgages applications on the increase

Despite the recent dip in the property market, first-time buyers are undeterred by 100% Mortgages and are still looking to get a good deal.  Although reports suggest that overall there have been fewer mortgages enquiries since the first quarter of 2007, first-time buyers are very much fully prepared to opt for 100% Mortgages.

Figures for September and October have fallen, but more than 78 per cent of the enquiries made during this time, were by first-time buyers wanting 100% Mortgages.  This is an increase of over 40 per cent compared to the first quarter of the year, when just 57 per cent of 100% Mortgage enquiries were from first-time buyers.

It is thought that the demand for 100% Mortgages is because people, especially first-time buyers, want to own their own home and get out of the money pit, which is renting.  This is then only encouraged by lenders like Alliance and Leicester, who are willing to offer up to 125% Mortgages, to ‘help’ people to get on the property ladder.

Interest rates have risen 5 times since August 2006 in an attempt to keep inflation down.  This has resulted in a slump in the market and first-time buyers being stretched to their limits.  With this in mind, some mortgage advisors are suggesting that even a 5% deposit could provide some stability in today’s rocky property market.