Lenders are beginning to offer 100% per cent mortgages to customers, is this the first sign of a recovery?
City Desk
The Government owned Halifax Bank of Scotland (HBOS) is offering to existing customers new mortgage deals with little or no equity in their homes of upto 100% loan to value.
The offer to existing customers is being offered "discreetly" according to Sharlene Goff of the FT "extending the maximum loan to value (LTV) on some new mortgage deals to customers who are coming to the end of cheap fixed or tracker rates".
The appearance of the controversial 100% per cent mortgages may concern some analysts who have warned against a pre-emptive surge in the property market before the market has reached its nadir, expected to fall a further 10-20% percent.
At present HBOS is offering the deal to customers who have no equity or even owe more money than their home's value. Customers are still required to have at least 5% per cent deposits, in contrast to the current 25 per cent required by other high street lenders.
The prospect of higher interest rates is forcing lenders to begin a greater ranger of packages for borrowers who may still have 10-15 per cent equity in their properties.
Warning: fopen(playlist.xml) [function.fopen]: failed to open stream: Permission denied in /var/www/vhosts/thelondondailynews.com/httpdocs/templates/content/product_info.tpl.php on line 591
Warning: fwrite(): supplied argument is not a valid stream resource in /var/www/vhosts/thelondondailynews.com/httpdocs/templates/content/product_info.tpl.php on line 592
Warning: fclose(): supplied argument is not a valid stream resource in /var/www/vhosts/thelondondailynews.com/httpdocs/templates/content/product_info.tpl.php on line 593
Dutch naval forces captured seven pirates and freed 20 captive fishermen after tracking the pirates to their "mother ship" in the western Gulf of Aden on Saturday, a NATO maritime spokesman said.
