30
Oct
Demand for 100% mortgages doubles
The number of Britons taking out 100 per cent mortgages during the
first nine months of 2007 has doubled compared with the same period
last year, according to new research from the Mortgage Advice
Bureau (MAB).
Data from the study conducted by the firm also revealed that demand
for 100 per cent plus mortgages was up 45 per cent.
The MAB's findings chime with those reported by the Co-operative
Bank, which said that it had noted a 30 per cent rise in 100 per
cent mortgages since the start of 2007.
Brian Murphy, Head of Lending at Mortgage Advice Bureau, said: "The
need for 100 per cent LTV (loan to value) mortgages has never been
more apparent than over the past year.
"Interest rates have been forced to rise to reign in inflation and
slow ever increasing house prices and as a result, buyers have been
stretched to the hilt."
He added: "The rate of house price growth has been fairly dramatic
and it has become impossible for many people to save sufficient
funds to buy in the traditional way."
