First-time buyers will suffer the most as a result of the withdrawal of 100% plus products, according to Hamptons Mortgages.
This week has seen all of the lenders offering the products – Alliance & Leicester, BM Solutions, Northern Rock, Godiva Mortgages and Abbey – pull their ranges from the market.
Jonathan Cornell, managing director at Hamptons Mortgages, said that when recommended responsibly, these products were a godsend to those stuck in rented accommodation and unable to save a deposit.
He continued: “It is ironic to witness the mass departure of lenders from this area, especially as this time last year they were falling over each other to enter into this market. I hope that once the credit crunch is over and the fears over house prices subside, that we see these popular mortgages reintroduced.”
