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Only five% of first-time buyers used 100% plus mortgages

March 4, 2008 by admin  
Filed under News, News-Mortgages

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Despite being “very good” for first-time buyers, only five percent of them used the 100 per cent plus mortgages to get themselves onto the property ladder, one financial expert has claimed.

According to Firstrung these 100 per cent plus products were “niche products” which never became as popular as people made out.

Paul Holmes, chief executive officer of Firstrung, said that the media tried “to portray that people went out and had a hundred per cent mortgage on their property … they didn’t. They had a 95 per cent mortgage, and could take a loan up to 30 per cent or £30,000 – whichever was greatest”.

Firstrung said that the majority of first-time buyers who took 100 per cent-plus mortgage product took a 95 per cent mortgage and a ten per cent personal loan.

Mortgage lenders Northern Rock, Alliance & Leicester, Birmingham Midshires and Abbey have all withdrawn from the 100 per cent mortgage market.

These lenders have begun to require borrowers to supply the deposit on a new home themselves.

Tags: cent plus mortgages, Birmingham, Paul Holmes, alliance, ladder, plus

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