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Last one leaves the 125 per cent mortgage game
22/02/2008
If you are looking for a 125 per cent mortgage from today then you could find yourself looking forever. As of today the last provider of 125 per cent mortgages has withdrawn their related offerings. BM solutions were the last provider of these types of mortgages who actually switched off their offering from yesterday midnight.
According to the news alert it was commented that “We constantly review our product offerings and make changes as and when necessary. We have withdrawn our self-cert 90 per cent LTV and Mortgage Plus products and will not be replacing them at this time.”.
Other lenders who also withdrawn their products from their market in the last few days have included Northern Rock who followed a few days after a Alliance & Leicester and Abbey National.
Industry specialists suggest this trend may continue in the future as a result of the credit crunch and the impact on the economy. There are fears that some lenders may see increased risks in their 100 per cent mortgages products too. In contrast some industry enthusiasts see these changes in the UK mortgage market as a mere blip and foresee lenders re introducing this type of product back into the market with better measures for identifying customers who potentially bear higher levels of risk to the lender.