Number of 100% mortgages still reducing, and help with repossessions

As a further sign of the tightening of the lending criteria, it is interesting to see that just 9 lenders now offer 100% mortgages. Six months ago, there were 22 lenders offering 100% products compared to just nine now in England. The number of products on offer has fallen from 162 to just 39. In Scotland only 7 lenders will sell 100% mortgages.

The lowest rates on offer in October were around 5.99% – now they are 6.14% despite the Bank of England cutting the base rate twice since then. Typical arrangement and associated fees were found to have risen from £4,954 to £5,134.

Although lenders have given up on 125% mortgages but there is still life in the 100% mortgage market albeit with higher rates and fees as companies price for risk. As always, the risk reflects the rate.


And as a follow on, when the nasty stuff happens, I can continue helping....

Mortgage Advisers believe they have a key role to play in helping to bring down arrears and possessions levels, by providing advice and counselling to borrowers, and helping them liaise with their lender, according to the Intermediary Mortgage Lenders Association (IMLA).

Almost half (48%) of brokers surveyed said intermediaries can support borrowers in difficulty – although a significant minority of 38% said their role was not to help borrowers manage arrears. The remaining 14% did not express a view.

Brokers said they needed early notification of an arrears problem by the lender – mentioned by 57% of respondents. A small percentage (9%) argued lenders should pay fees to brokers for arrears counselling.

IMLAs executive director commented: “Many, but not all, intermediaries are keen to play a more proactive role in supporting borrowers who may get into financial difficulty, seeing this as an integral part of the service they provide their customers over the long term. They are able to provide a higher level of expertise and independent advice to borrowers than they could find elsewhere.”

If you have a problem paying your mortgage, or know someone who is having problems, please feel free to contact me and I'll do all I can to assist in such matters. After all, the service I offer is from end-to-end, warts and all !