More than one in five advisers believe that 100% plus LTV mortgages can raise the overall value of a property because they allow buyers to spend extra money on home improvements, according to Alliance & Leicester Mortgages.
A survey by A&L Mortgages found that 21% of brokers thought 100%+ products could add value, while 73% thought that first time buyers will be the main beneficiaries of a combined mortgage and personal loan product.
A further 22% of brokers say first time buyers will benefit from 100%+ products because they will be able to get on the property ladder sooner by not spending time saving for a deposit.
Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, comments: “Rising interest rates and house prices means first time buyers need flexible products that will help them get onto the housing ladder.”
The research also found that more than half of mortgage brokers surveyed say there will be a growing need for advice on 100% plus LTV mortgages with personal loans during the next two years.
“With the huge range of products on offer and first time buyers coming with differing needs and knowledge, it is important they seek good quality advice to make sure they make the right decision”, adds Claridge.
There are currently only five UK providers offering bundled mortgage and personal loan products, with Alliance & Leicester the latest to launch in the sector.
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