Financial news categories
Financial news archive
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
100% mortgages 'were good for some'
29 February 2008
The withdrawal of the 100 per cent mortgage has seen them criticised by certain elements of the media, but one expert on first-time-buyers has stood up to defend them.
Paul Holmes, CEO of Firstrung, which helps first-time-buyers, said that media criticism was not fully justified as the products were a boon to people trying to get on the property ladder.
He said: "It's so easy to criticise these products now they're gone. But, in fact, in a lot of instances, they were very good."
The last few banks offering the 100 per cent mortgages, Northern Rock, Alliance & Leicester, Birmingham Midshires and Abbey, have all withdrawn their products and now require borrowers to put down a deposit themselves.
But, according to Mr Holmes, they were never as prevalent as the media made them out to be.
He said: "You're not going to be able to get 100 per cent-plus mortgages, but they were such a niche product anyway.
"And, the other issue is, the media is trying to portray that people went out and had a hundred per cent mortgage on their property … they didn't. They had a 95 per cent mortgage, and could take a loan up to 30 per cent or £30,000 – whichever was greatest."
