First time buyers & 100% Mortgages

For first time buyers now more than ever will a deposit be an essential part of arranging a mortgage and making it onto the first rung of the property ladder.

Many lenders have reduced the maximum loan to values ratios on many of the mortgage deals, since October last year the tightening of credit in the money markets has forced many lenders to increase deposits to ten percent.

Many high street lenders Abbey, Halifax and Nationwide still offer loans of up to 95 percent loan to value.

It’s the more cautious lenders that are tightening their belts.

Since last June, ten lenders have pulled out of the 100% mortgages loan to value market while 11 lenders have reduced their maximum loan to value on some or all of their range since December.

The main 100% mortgages lenders Northern Rock, Birmingham Midshires, Coventry and Mortgage Express are still offering deals with income multiples reduced to suit todays market.