100% rise in 100% mortgages

The number of house-buyers taking out 100 per cent loan-to-value (LTV) mortgages has doubled in the past year, it has been reported.

Figures from the Mortgage Bureau show that the number of 100 per cent mortgages reached this mark between the third quarters of 2006 and 2007, Firstrung reports.

Brian Murphy, head of lending at the Mortgage Bureau, told the website the number of 100 per cent LTV mortgages might fall if the housing market sees a significant correction.

"This situation however is a long way from reality and until this time, 100 per cent plus mortgages offer a real opportunity for buyers to finance the purchase of their property," he emphasised.

First-time buyers may also be poised to benefit from the increased availability of new build homes as the housing market begins to slow down, according to Dave Bexon, marketing manager of SmartNewHomes.com.

He said many developers would be "acting quickly" to sell homes before Christmas, which could create many new bargains for first-time buyers.

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