20-02-2008
UK Lenders pull away from offering 100% mortgages
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
A representative from moneysupermarket.com has commented on the flurry of lenders who are moving away from the offering 100 per cent mortgages to the UK market.
The organisation believes that the withdrawal of some of the most well-known lenders from the sector will negatively impact upon overall confidence levels.
Moneysupermarket.com believes the withdrawal of some lenders has occurred as a consequence of weakening property prices.
However, products with a loan-to-value up to a maximum of 125 per cent are still available from Birmingham Midshires and Northern Rock.
"Lenders … have always ensured stringent credit checks are carried out on borrowers applying for 100 per cent plus mortgages," said moneysupermarket.com, a comparison site launched in 1999.
"Therefore, we must conclude the rationale for pulling out of this part of the market is due to concerns over falling property prices."
Among the firms who have withdrawn from the market for 100 per cent mortgages are Alliance & Leicester, Godiva and Abbey.