Abbey have launched their 125% mortgage “unwise” maybe not

Abbey have launched their 125% mortgage product.

 They have been accused of fuelling the fire. The 100 to 125% mortgage market is still strong there are plenty of other lenders competing in this market including Birmingham Midshires, Alliance & Leicester, Mortgage Express, Royal Bank of Scotland,Coventry, Leeds & Ipswich & HSBC

 The 100% Mortgages market is a competetive market which can sometimes be the only option.

 In a rising economy the additonal borrowing is covered by the increase in property value. With the current credit crunch problems in America where loans have been secured against “trailer park bad credit mortgages” that are poor assets, its understandable that the worlds press are castigating the Abbey, surely all the other lenders can’t be wrong. The major difference here is that Northern Rock and other lenders are borrowing against solid assets.

 Are they fuelling the fire or offering a product of our time. Lenders have very tight credit checks to ensure people can afford the payments now and in the future.