Well, what with all the press coverage the current 'credit crunch' received, it was inevitable that the 100% mortgage era was nearing an end and earlier this month, Abbey announced their withdrawal of their 100% mortgages for first time buyers.
Abbey being the last lender in this particular mortgage lending arena pulled their 100% mortgaging service following many others who pulled out a number of weeks prior and this was as a direct result of the well publicised 'credit crunch'.
Even now, the tightening up of lending continues and will no doubt go on for some time to come - the banks and building societies throughout the UK having to adjust to such a difficult credit climate - many lenders are now operating as they did years ago whereby the first time buyer needs to save as much as 15% to put down as a deposit on their new home ... the lenders offering at most, 85% as a loan to value ration, also known as LTV, not to mention increased interest rates and higher fees.
So what does this mean for the first time buyer?
Simply put, you'll have to save for a deposit to put down on your first house purchase or wait - nobody knows just yet whether 100% mortgages are gone for good, it might simply be a temporary suspension of them but it is not thought they will make a return too soon.
For great 85% LTV deals for first time buyers - visit Want 2 Buy It.co.uk ...
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