Your Right Move

Monitoring the current climate for UK home owners and renting property
Follow YourRightMove on Twitter

No deposit mortgage is back

Oh dear, it seems 100 per cent mortgages are back!. Relatively new bank Aldermore which was set up at the start of the credit crunch is making headlines with its new offer of  5% savings and no deposit mortgages.

Bringing back 100%  loans for first-time buyers to get on the housing ladder without saving a penny will certainly cause controversy since it’s been 3 years since being scrapped.

first-time-buyers-mortgage

first time buyers now with 100 per cent mortgage

Aldemore claim that they reduce their risk as to obtain the loan, potential homebuyers will need to secure a guarantor, such as a parent, grandparent or guardian, who is willing to support it.

Surely this 100% mortgage offer in effect means a likelihood of more repossessed properties if the recession keeps biting and therefore  the  guarantors also face losing the roof over their heads.

Who is Aldemore? Aldermore is effectively the only bank to launch in Britain since the onset of the credit crunch. Aldemore was  launched in 2009, is  officially the first lender to offer a new mortgage at 100 per cent since the widespread withdrawal of these high loan-to-value (LTV) deals during the financial crisis.

 

 

 

posted by Zane in Lending,Mortgage and have Comments (2)

2 Responses to “No deposit mortgage is back”

  1. Fleur says:

    Let’s hope this paves the way for free-er financing by mortgage lenders, although perhaps not as liberal as it was, ie. 6 x salary mortgages that were unaffordable in the first place.

  2. Zanet says:

    I see we are getting news of the 95% mortgages are back as well
    After years struggling to save big deposits, first-time buyers are hopeful of getting on to the property ladder as lenders line up to offer 95% mortgages

Place your comment

Please fill your data and comment below.
Name
Email
Website
Your comment

css.php