I always thought it was 100 per cent mortgage is a bad idea in the first place. It was something my parents never warned me when I bought my first house with my girlfriend, and if they warn parents not to feel anything, when it recommended for funding, it will be because we know what your talking about.
So the value of loans that you borrow more than your property can be the end to get some of the scrappinglargest lender in the United Kingdom. It seems that the crisis of the credit crunch in the United States and perhaps the collapse of Northern Rock in Britain for the banks must stop and think more responsibility for the salary multiples and loan to value (LTV) are stairs are willing to offer to customers.
125 Ltv Home Loan
The combination of a mortgage is, five times your salary expectations and a high LTV, is a very scary thought, if you ask me. Not only extends monthly salary, which is agood part of the salary towards paying the mortgage, but they also borrow more than your property is worth in the first place, so you start in a negative equity. A very risky strategy to play in the housing market.
Statistics like this, even before Christmas, a third of UK mortgage lenders offered 100 percent, some offered more than 100 percent, in general, up to about 125 percent of the value of the property. Currently, only one in ten provider also offers 100 percentMortgage.
The general idea is that 100 per cent mortgages are usually more desperate divorced or first-time buyers, have taken on the property ladder. The additional funding will increase by about the loan used to process costs, stamp duty etc. coverage. This means that people are now hard before a fight, because they start at home life in negative equity, the debt is worth more than their property.
Farewell to 100 percent mortgage
