The number of first time buyers opting for 100% mortgages has more than doubled over the past year, according to the Mortgage Advice Bureau (MAB).
Rapidly increasing house prices are the major contributor, forcing first time buyers to borrow increasingly large sums to buy their first home. The MAB’s figures show 549 buyers used 100% LTV mortgages in the first nine months of 2006, a number which has grown to 1,209 in the first three quarters of 2007. Research also found a 45% increase in the number of buyers using mortgages which offer more than 100% of a property’s value, up from 1,394, to 2,022. Brian Murphy, head of lending at the MAB, comments: “The need for 100% LTV mortgages has never been more apparent than over the past year...
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