30 Oct

Demand for 100% mortgages doubles

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."

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