100% mortgages 'will not be given to everyone'

Date:Wednesday 23rd September 2009
Author: Max Freedman

First-time buyers should happy about the new 100 per cent mortgage deal being offered, but should not expect to automatically qualify, says an industry expert.

Helen Adams, managing director of FirstRungNow.com, welcomed the move by Mansfield Building Society to offer this sort of mortgage deal, as she stated that first-time buyers were having a tough time.

She pointed out that most mortgage deals available at the moment require large deposits to be made, which many people do not have.

"It is good to see somebody going back into this market. I presume they will be quite conservative with who they lend to, but that is to be expected," said Ms Adams.

The offer from Mansfield Building Society is only available to people buying houses through the South Yorkshire Housing Association on a shared-ownership basis.

In this way, buyers can borrow up to 100 per cent of the total amount that they can initially own, which is 60 per cent of the value of the property.