The end of 100% Mortgages?

Rumors have been circulating over the last 48 hours that many of the so called 100% - 125% Mortgages may be withdrawn from the market.
With the current credit crunch effecting many finance companies it seems the risks involved with lending on top of the secured mortgage may outweigh the benefits.
It is already close to impossible for people with adverse credit to obtain 100% mortgages unless they opt for an adverse credit mortgage from Future.
The main players being BM Solutions, Northern Rock & Mortgage Express who all offer over 100% mortgages by securing a 95% mortgage on the property and then offer an unsecured loan up to £30,000.
Interest rates for these specialist products have increase faster than the current base rate in recent years with some being over 2% more than base. 100% mortgages often tend to have higher fees attached such as booking fees, valuation fees and arrangement fees. All of which makes this type of lending the most expensive on the market.
I will update this blog when I receive news on the current situation with Future offering 100% later this week. I hope for the sake of client needing such lending that the mortgages will still be on offer.
Much of the entry level properties in the UK are currently purchased by buyers who obtain 100% mortgages due to having insufficient deposits. If these clients can no longer obtain finance for the property purchase it will be a potentially dangerous situation for the UK housing market.
Search the whole market now for 100%-125% Mortgages Wales.
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