100 per cent-plus mortgages were 'very good' for some borrowers
Published On 3 March 2008
It is easy to criticise 100 per cent-plus mortgages now that many lenders have started to withdraw them but they were extremely beneficial for many people.That is according to Paul Homes, chief executive of Firstrung, who has asserted that the media's negative portrayal of these "niche" products is not wholly justified.
Mr Homes noted that, for many customers, 100 per cent-plus mortgages involved taking out a loan which was in fact 95 per cent loans.
He explained: "You're not going to be able to get 100 per cent-plus mortgages, but they were such a niche product anyway.
"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.
"It's so easy to criticise these products now they're gone. But, in fact, in a lot of instances, they were very good."
