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Archives May 2018

HIGH street banks are offering 100% mortgages once again!

Ever since the 2007 financial crisis, the mortgage deals have vanished.

Banks are offering 100 per cent mortgages – the same deposit-less deals that contributed to the economic crash of 2007.

But now Post Office and Barclays are among lenders hoping to lure in first-time buyers who can’t get a deposit together.

Often a family member is brought in as a guarantor to get around tough restrictions.

But critics of the schemes have warned it could lead to negative equity, or another market collapse.

Housing prices dropped 3.1 per cent last month – the biggest month-to-month drop since 2010.

Often a family member is brought in as a guarantor to get around tough restrictions.

Justin Modray, founder of consumer website Candid Money, told Mail Online buyers should be aware of the risks.

He said: “If things go pear-shaped people could end up losing their homes to the bank or being chased for their savings.”

Traditionally, buyers have to put down at least ten per cent of the value of their new home.

But escalating property prices led to banks getting creative with introductory offers, and driving down deposits.

When the economy crashed, these deals were pointed to as an example of credit-culture and were subject to strict City regulations.

The 100 per cent mortgages could even put the houses of your family guarantors in trouble if you fall behind with payments.

Last month’s decline in housing prices took the average UK house to £220,962, Halifax said.

Another problem for homeowners – those who are lucky enough to already have a foot on the ladder – is the lack of second homes available to buy.

Even though strong house prices mean that second steppers are likely to have made money on their current homes, they often can’t afford to move on.

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