The no-deposit deal requires relatives to attach 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 hold 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, and there will be many who still can’t derive their hands on a loan. The new breed of 100% loans comes with strings – or rather parents – attached.
Borrowers who don’t hold a deposit hold 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 hold 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