The 100 per cent mortgage deals that had been on offer until recently represented a good way for some people to get a foot on the housing ladder, according to one expert.
Louise Cuming, head of mortgages at Moneysupermarket.com, has suggested that the 100 per cent loan to value deals, which are now being removed by lenders, gave first-time buyers the chance they wanted to get on to the property ladder.
However, Ms Cumming also noted that anyone taking on a mortgage needs to appreciate that it involves a long-term investment and that in most instances it will take many years for a borrower to become debt free.
“Borrowers need to understand that buying a house isn’t a short-term investment, you’re in it for the long haul,” she said.
“As long as you go into them with your eyes open, I thought [100 per cent-plus mortgages] were an excellent way to get onto the housing ladder.”
CreditExpert reported recently that British consumers are becoming less confident about using credit and dealing with debt.