100 per cent mortgages lead a trend

29/10/2007

During nine months to September 2007, twice as many people have taken out 100 per cent mortgage.

The company witnessed 1,209 100 per cent of mortgages were engaged during the first nine months of 2007 leaving only 549 taken out by Q3 2006. This leaves the bound down to the rise in property prices and further rising interest rates.

Mortgage Advice Bureau Brian Murphy commented further saying the need for 100 per cent mortgages has certainly not been the case since the start of 2007.

He added: "Interest rates have been forced to rise to reign in inflation and slow ever increasing house prices and as a result, buyers have been stretched to the hilt. However, with current climate conditions and the initial signs of house price stabilisation, there might be a glimmer of hope for these buyers."

Mr Murphy feels this situation is a long way from certainty and until this period 100 per cent mortgages present a great prospect for first-time buyers to jump on to the property ladder.

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