Borrowers needing 100% mortgages 'shouldn't be buying'

Date:Wednesday 4th March 2009
Author: Susanna Kavka

Those who need a 100 per cent mortgage should not be buying a property, a foreign property advice company has said.

Managing director of John Reilly was responding to reports that Britons can still get such loans if they wish to buy houses in France.

"You have got to question people relocating to a new country but needing a 100 per cent mortgage to do it," he pointed out.

But Mr Reilly also said that most people would not wish to purchase unless they could properly afford it.

"It is generally perceived in the property market that if you need a 100 per cent mortgage then you shouldn't be buying a property," he noted.

French Mortgage Direct recently said it could give 100 per cent loans to overseas people buying French properties.

According to Jet-to-Let, a property investment publication, France has been voted the second most popular place for foreign property investors.

It was beaten only by Cyprus.