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Rumors have been circulating over the last 48 hours that many of the so called 100% - 125% Mortgages may be withdrawn from the market.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.
Mortgage Quote

A new way to learn about finance.

FruitMortgages.com, a new internet based mortgage portal designed to aid UK consumers make informed choices on their mortgage and insurance need.
The website offers users information on the different types of mortgages available such as Fixed Rate Mortgages and Tracker Mortgages. It also offers information on the different types of mortgage holders such as first time buyers, adverse credit mortgages, re-mortgage buyers and buy to let mortgage investors.
FruitMortgages.com offers access to independent mortgage brokers who have whole of market access to the latest mortgages. The mortgage broker can then offer mortgage quotes based on the clients circumstances.
FruitMortgages.com is aimed to connect people searching for a mortgage quote with independent mortgage advisers in the UK.
“I wanted to create a website where users can learn about the different types of mortgages available and have the ability to speak directly with a qualified independent mortgage broker.” said Daniel Morgan the Founder of the website.
The company would like to eventually offer users the ability to search for mortgages on the website and apply online. Currently users can gather information and request a call back from a qualified mortgage adviser. The mortgage adviser can then either meet with the client or produce a mortgage quote over the phone.
The website covers the whole of the UK through a network of over 1800 IFA’s and Mortgage Advisers.
As the usage of the internet continues to grow it will be interesting to see how online mortgage portals such as FruitMortgages.com shape the future of the UK mortgage industry.