Property News · May 4, 2016

Barclays 100% mortgage: how much does it really help homebuyers?


The no-deposit deal requires relatives to put up funds or act as guarantors, and all parties to take a tough affordability testThe launch of the Barclays 100% mortgage brings the number of products aimed at borrowers who do not have a deposit to its highest since the financial crash. But, while would-be first-time buyers may be skimming the pages of Rightmove with new-found enthusiasm, there will be many who still can’t get their hands on a loan. The new breed of 100% loans comes with strings – or rather parents – attached.Borrowers who don’t have a deposit have been able to choose between a handful of other lenders for some time. Challenger bank Aldermore launched a 100% loan in 2011, and several small building societies have followed. But we are nowhere near the market seen in the runup to the credit crisis: financial information firm Moneyfacts says there are now eight 100% mortgage deals to choose from, compared with 238 in August 2007. Continue reading…

Source : theguardian.com
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