The end of 100% mortgages says National Homebuyers
There may be a surge in the number of people seeking a fast property sale as the last 100 per cent mortgage is to be removed from the high street.
[UKPRwire, Wed Apr 23 2008] Abbey has announced that it is following the trend set by other lenders by removing the products from its range.
It is a major blow to borrowers, particularly first-time buyers, and sounds the death knell for 100 per cent deals from major UK lenders.
There is a strong chance that the end of the mortgage deals will have a huge impact on new buyer numbers, leading to decreased demand and price falls.
This could potentially lead to more people seeking a fast property sale.
Abbey released a statement explaining why it is withdrawing from the 100 per cent mortgage market.
"Abbey is seeing high demand following recent competitor moves. In order to maintain high service levels on the business it writes, it is simplifying its mortgage range and re-pricing in some areas," it read.
Fast property sale expert Julian King of National Homebuyers comments, "We can predict that more and more lenders will be removing their 100 per cent mortgages, followed by intervention by the Treasury to try and rectify the situation as a sufficient amount of buyers to keep the market afload are absent.
"Banks will also attempt to increase charges to borrowers with limited deposits, again, perpetuating the cycle of 'lack of buyers means property prices fall'".
Mr King is a director of National Homebuyers. The company is the UK's leading fast property buyer which provides a series of solutions for homeowners who need to sell their home fast. The company is the leading provider of Sell and Rent Back solutions which allows the homeowner to sell their property for cash within days, but remain living in their home for as long as suits.