Demand for mortgages of at least the value of a property has risen sharply this year as borrowers have found it more difficult to get on to the housing ladder. Financial Times
Mortgage Advice Bureau, a broker, has seen demand for 100%t mortgages double in the first nine months of this year, compared with the same period last year. The number of buyers taking out mortgages in excess of 100% rose by 45%.
Brian Murphy, head of lending at MAB said: “The need for 100% mortgages has never been more apparent than over the past year. 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.”
Other brokers and mortgage lenders have seen a similar trend. The Co-operative Bank has seen a 30% rise in 100% mortgages as a proportion of its first-time buyer lending since the start of this year.
Alliance & Leicester launched a mortgage offering loan-to-values of up to 125% in April and has seen a “steady increase” in demand. Abbey, which entered the market last month, said it was “pleased with the take-up”.