Mortgage News

Buyers will opt for 100% mortgages 'to get a home' - 01/11/2007

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First-time buyers in Britain are rallying and are prepared to go for 100 per cent mortgages in order to secure their first home, a new study reveals.

Despite a recent dip in the UK property sector, caused partly by the effects of the US sub-prime lending crash, first-time buyers are more determined than ever to get onto the property ladder, it has been claimed.

According to analysis from FairInvestment.co.uk, overall mortgage enquiry figures dipped between September and October this year, but more than three quarters (78 per cent) were from first-time buyers who required 100 per cent mortgages.

The number of first-time buyers requiring 100 per cent mortgages has soared since the first quarter of 2007, when just 57 per cent required 100 per cent mortgages.

"Britain's love affair with the property market is far from over, despite the recent dip and the gloomy forecasts for the next few years," James Caldwell, FairInvestment.co.uk director, commented.

"First time buyers are still keen to seek out a deal and are fully prepared to opt for 100 per cent mortgages if it means getting their own home."

A number of UK lenders, such as the Co-operative Bank and Alliance and Leicester, have reported sharp rises in 100 per cent mortgage applications from first-time buyers. Competition is pushing down interest rates in market, though many borrowers are still stretching themselves to the limit to buy a new home.

Figures from online mortgage company Mform.co.uk indicate that 33,000 first-time buyers borrowed 100 per cent or more of the value of their property during the first eight months of 2007.

© Adfero

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