100 per cent mortgages 'remain safe'

Mortgages for the full value of a house - known as 100 per cent loan to value (LTV) mortgages - are a good option for some customers, a property investment website has said.

This is despite widely forecast fears of price drops and a slowdown in the housing market, says BestInvest.co.uk.

The investment website believes that certain sections of the demographic benefit more than others from 100 per cent LTV mortgages.

Peter O''Donovan, mortgage manager for BestInvest, says that in his company''s experience it is "the people with good earnings, a good job, who need to move quickly to get onto the market" who go for 100 per cent mortgages.

"But, certainly, for young professionals who''ve had to pay a lot of money for their studies, this is actually quite a good product for them," he added.

Earlier this week, the Bank of England released a report that said mortgage accessibility should not be unduly constrained by the recent Northern Rock credit crisis.

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