Despite heavy criticism from both consumer groups and the media, a recently conducted industry survey has revealed that mortgage and loan products carrying the 100% + LTV stamp are set to soar in popularity, in the not to distant future.
It is suggested that around 80% of home loan providers in the UK are expecting the (100% LTV) market to show sizeable growth over the next 3 years partly due to high house prices and partly due to rising interest rates.
According to a separate survey, copious amounts of first time buyers are finding that traditional mortgage and loan products are beyond their financial remit, and are causing many people to go against the grain in order to attain suitable finance. A handful of specialist lenders announced that the 125% mortgage would be made available to borrowers, although they also stressed that only a select few would qualify due to the potential financial risks.
Regardless as to whether critics believe that such loan and mortgage products are within the borrowers best interests, our current economic conditions have made such financial extremities a necessary evil. Analysts have also speculated that increased popularity in niche lending may possibly cause an economic shift, which could have disastrous consequences for some homeowners.
