25 Apr

100% mortgage holders 'unlikely to face equity woes'

100% mortgage holders 'unlikely to face equity woes'

The first-time property buyers who took out 100 per cent mortgages before 2007 are unlikely to see any negative equity worries, it has been claimed.

Mortgage advisor Alexander Hall said that some buyers could be at risk, but these are the ones who chose to take on a "95 per cent loan-to-value mortgage".

Yet these borrowers make up just ten per cent of those who took out deals last year, spokesman Andy Pratt noted.

And changes in the market should mean that an element of protection is added to other borrowers

He commented: "Anyone who's taken out a mortgage before that time - even up to a hundred per cent - will actually be fairly safe because of the increase in house prices."

The advisor based his estimations on some of the comments made by leading analysts in the industry in recent times.

Earlier this month, Abbey announced that it has dropped its 100 per cent mortgage in the wake of the credit crunch.ADNFCR-1222-ID-18569270-ADNFCR

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