RSS Feeds100 per cent mortgage to disappear for Abbey
07/04/2008
UK bank Abbey has decided that it will no longer offer 100 per cent mortgages as of this week. The move comes about with no real shock as Abbey becomes yet another bank to ask for a level of deposit to secure funding for their homes.
The knock on consequences of the impact of the credit crunch has impacted the whole financial industry and Abbey intent to re-look at their product portfolio by taking out certain products with the view to increase the rate of borrowing on certain mortgages. Many lenders have now opted for a deposit oriented mortgage deal which is capped to a maximum borrowing capability of 95 per cent of the property value.
The organisation has commented that “"Abbey is seeing high demand following recent competitor moves," the lender said in a statement. "In order to maintain high service levels on the business it writes, it is simplifying its mortgage range and repricing in some areas."