Bank in 100% mortgage withdrawal

Abbey has announced that it is withdrawing its range of 100 per cent mortgages as it tightens its lending criteria in the ongoing credit crunch crisis.

The lender has also said it will raise rates on some tracker and fixed mortgages by between 0.11 per cent and 0.37 per cent.

A spokesman for the bank commented: "In order to maintain high service levels on the business we write, we are simplifying our mortgage range and repricing in some areas."

The decision follows the suspension of lending to new customers of some products by First Direct and the Co-operative Bank last week.

Would-be homeowners unable to get a good mortgage deal may decide to use the self build method to get on the housing ladder instead.

Another major lender, Halifax, has revealed that it is raising the bar for borrowers by increasing its mortgage rates for those without a 25 per cent deposit.


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