100% mortgages double in a year
According to a recent report the number of 100% mortgages that are available in the UK has doubled in the space of a year in order to enable consumers with no deposit to get onto the property ladder.
With these mortgages the buyer does not have to put down a deposit, and this type of mortgage has become particularly popular amongst first time buyers that do not have equity from a previous property and are unable to raise the hefty deposit required for a standard mortgage.
The steep rise in property prices in the UK over the past few years has made it more and more difficult for house buyers – in particular younger first time buyers with no equity and little in the way of savings – to raise any sort of deposit, and without the availability of no deposit mortgages many of those fitting into this category would be left out in the cold in terms of getting onto the property ladder. However, the availability of these mortgages means that even without a deposit buyers can get a mortgage.
The finding from a survey carried out by MoneyExpert indicated that there had been a rise of around 112 percent in the number of 100 percent mortgages in the past year.
According to the figures the number of no deposit mortgages has risen from 60 in May of 2006 to 127 in May of 2007. Officials from MoneyExpert state that lenders are having to find new ways to allow more people to get into the property market because of the extortionate cost of properties.
A spokesman for MoneyExpert said: "Affordability is the buzz word at the moment as lenders look to find new ways to bring first-time buyers into the property market. Offering 100 per cent mortgages is another example of this, as saving for a deposit on even the average property can take years."
Tom Smith
29th June 2007
More Information:
- Choosing The Right Mortgage
The market is flooded with different types of mortgages, but how do you know which one is right for you? The decision has to be yours, whether you take advice from an Independent Financial Advisor or do your own research.
- Different Types Of Mortgage
Rather like a full house in poker there seems to be a wide selection of mortgages on the market, but aren’t many of them the same kind of product?
- How long would you like you mortgage to run? The simple answer would be as quickly as possible, but not everyone can, which means higher repayments and more strain on the household budget.
- Your Home as Collateral For Other Loans
When you become a home owner you immediately open up more doors for yourself in terms of being able to borrow money to make things happen. It might be a business idea or an investment opportunity, but buying into property can open more doors than you might think.
- Mortgages – What Will Be Next?
Maybe some forty years ago mortgages were very solid things that you took out: you would stick with the same company for the entire period of the loan and you could find fixed rate deals that would also last the full twenty five years.
