Experts doubt the future of 100% mortgages following the recent exodus from the sector.
Both Norrie Henderson, director of lending – Scotland at Bank of Ireland Mortgages and Simon Cocker, head of business development for the Dunfermline, said that if more lenders withdrew this could lead to the market disappearing completely.
Both Bank of Ireland and the Dunfermline continue to offer a 100% product.
Henderson says: “I don’t think that any lender will want to be the only player left in the 100% or 95% market simply because of the business they would then attract. If more lenders continue to pull out, then more will follow.”
Cocker adds: “Our challenge at the moment is to keep our service standards up because as more lenders pull out of 100% mortgages, we are obviously receiving more enquiries.”