Mortgages -
125 per cent Mortgages No Longer Available - 24/02/2008
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The last mortgage lender offering 125% mortgages has pulled its product from the market, it was announced Friday.
The lender, Birmingham Midshires (owned by the Halifax), was the latest and last of 6 mortgage lenders who have all stopped offering the service this week. Thursday saw Northern Rock withdraw its ‘Together’ package, which combined a mortgage and a personal loan, whilst Alliance & Leicester said Tuesday that it would no longer be offering its PlusMortgage – a package which offered a 95% mortgage as well as a personal loan.
The loans have been highly controversial since their conception, criticised for allowing people incur large debts. The joint mortgage and loan package offered by some lenders, however, did give first time buyers the chance to get a foot on the property ladder. Birmingham Midshires blamed its decision on ‘a number of factors’, according to a spokeswoman.
The move will be bad news for those hoping to take advantage of the offers to finance a first home or to remortgage an existing property.
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