'No way back' for 100% mortgages

There will be no return to 100 per cent loan-to-value mortgage deals once the credit crunch is over, it has been predicted.

Nationwide chief executive Graham Beale told the Financial Times the credit crunch was hailing a more expensive period for mortgage borrowers following the disappearance of 100 per cent deals with the withdrawal of the last such product by Abbey last month.

He commented: "I can't see 100 per cent loan-to-value loans returning in the market in the medium-term let alone the short term."

In addition to this cost increase, the actual value of homes will fall by four or five per cent, Mr Beale predicted.

Those concerned at the lack of favourable mortgage deals may consider the alternative strategy of self build.

Archie Stoddart, the director of Shelter Scotland, told the Daily Record the end of 100 per cent mortgages was making it harder for young people in Scotland to get on the housing ladder.


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