08-04-2008
Abbey ends 100% mortgage deals
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The last remaining UK lender to offer 100 per cent mortgages will withdraw them from the market tomorrow.
Following a course of action already adopted by other mortgage lenders, Abbey has confirmed that first-time buyers looking to purchase a property will be required to have saved a deposit of at least five per cent.
"Abbey were hanging on in there offering 100 per cent mortgages when everyone else had departed the market," said David Hollingworth, a mortgage broker at London & Country, in a report by the Guardian.
"But you simply can't any longer be the last man standing as you get swamped with applications."
However, a number of other mortgage providers have opted for lower minimum loan-to-value levels (LTV), with Britannia, Alliance & Leicester and Cheltenham & Gloucester opting to set their maximum LTV at 90 per cent.
One remaining lender, Bristol & West, offers a product similar to a 100 per cent mortgage, but it differs in the sense that it requires a parental guarantor, reports the BBC.