People now choosing 100% mortgage deals

26/02/2007

Since 2006 100% mortgage deals have nearly doubled in volume.

Building societies and banks are offering different types of mortgage deals to those without any large cash funds, savings, just to invite people on the property ladder.

For a perfect mortgage deal people are choosing the 100% option and figures estimated a 95% increase since 2006, stated Brokers London & Country.

A broker also stated that 50% of people had taken on a 100% plus loan.

Moneyfacts have found out that there is a record of 155 such mortgages on the market.

The larger mortgages are more popular with divorces; also people who have no large savings and first-time buyers.

The interest rate on a large mortgage is 1 per cent higher than a loan, other lenders charge up to £1,500 or even £3,000. Experts say that this type of mortgage should be cheap as there are many lenders on the market offering this type of mortgage deal.

Last year 22,000 people at the minimum choose the 100% mortgage deal, this information was forwarded by the CML group, Council of Mortgage Lenders.

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