Lenders increase the number of 100% mortgages
Lenders have greatly increased the number of 100% mortgages that they have to offer in the UK, despite the higher interest rates and tighter lending restrictions for borrowers.
There is said to have been a rise in 100% mortgages by a huge 70%, over the last 6 months, regardless of the risks. Homeowners are being advised not to end up with a loan greater than the value of their home and to consider the fees that they will incur should they not be able to keep up with repayments.
With house prices continuing to rise, the 100% mortgage is becoming a very real prospect for first-time buyers, who feel that they are being left with no choice should they want to join the property ladder, which is said to be safer than having your money in the bank. However, this is not going to be the case, if interest rates continue to rocket.
It is suggested that an 100% mortgage plus is not the way to go for first-time buyers and that they should enlist the help of family and friends to get together a deposit, which more and more people are now doing. But is this the answer?
People are obtaining 100% mortgages all over the country, which is allowing so many first time buyers to establish a foot-hold on the property ladder, and this will continue to happen until we see a return more affordable house prices.
