Pulling 100 per cent mortgages will harm the already-fragile UK housing market, says Hamptons managing director Jonathan Cornell.
He says all the lenders pulling out of this market, lastly with BM Solutions’ announcement this morning, often denies first-time buyers any hope of getting on the housing ladder.
Cornell says: “It is a real shame to see so many products being removed from the market as in the current economic situation, these provided the only real hope for struggling first time buyers.
He says with the average house price eclipsing the average salary of an FTB, cash-strapped would-be borrowers without deposits could take advantage of these “godsend” products if they are stuck in rented property and unable to save a deposit.
Cornell says: “Unfortunately, the disappearance of so many 100 per cent-plus LTV mortgages from the market will make it even harder to first time buyers to purchase a property. In turn, this may continue to weaken Britain’s already fragile housing market.
“It is ironic to witness the mass departure of lenders from this area, especially as this time last year they were falling over each other to enter into this market. I hope that once the credit crunch is over and the fears over house prices subside, that we see these popular mortgages introduced.”