Mortgage News

Lack of savings increase the need for 100% Mortgages.

Recent research has shown that many first time buyers are finding it hard to save up the levels of deposit that are required to get the first step on the house buying ladder.

The majority of those questioned admitted to skimming funds from their deposit savings and 10% of those questioned admitted to dipping into their potential deposit every month. The report which was conducted for the Council of Mortgage Lenders, shows that the majority of first time buyers feel that a 100% mortgage was the only way they could realise the dream of owning their own home.

Whilst some senior industry professionals are questioning the financial sense in offering mortgages to those that are unable to save a deposit, there is a counter argument that states, many of those who are looking to buy for the first time are already paying substantial rental payents, the income is sufficient to cover the cost of the mortgage payment comfortably. This alone makes the mortgage a good sense option for both the lender and the applicant.