Could we see a 100% LTV mortgage comeback?
With a recent YouGov survey suggesting that almost half (48%) of Brits think bringing back 100% loan-to-value (LTV) mortgages is a good idea, could this be on the cards?
It seems unlikely at the moment as both lenders and the regulatory authority seem to be resistant to the idea of a reintroduction. However, this could change if lenders and the FCA see that there is:
- the demand
- a responsible approach to lending is maintained
- a greater number of would-be borrowers who can satisfy the affordability checks
The market and mortgage-hunters alike saw the last of 100% mortgages after the credit crunch of 2008. Lenders were left exposed as many borrowers found themselves in arrears.
Since then, hard lessons have been learned and the criteria that lenders use to assess affordability have toughened. Consequently, it’s much harder now than ever before to secure a mortgage. These more rigid policies include having to save at least 5% of the value of the property for a deposit. However, even having to find 5% is proving to be beyond the financial reach of many first-time buyers.
There are options, of course, and this is where consulting with expert mortgage broker, Deal Direct can prove to be extremely useful.
This is because there’s nothing we don’t know about UK mortgages. We have years of mortgage sourcing experience under our belts, and are confident that if there’s a mortgage solution that would fit your needs available on the market, we’ll find it for you.