First-time buyers offered 100% by Finance News Bulletin

Published: 15/05/07

News Companies & markets Investing authority portfolio Campaigns Mortgages & homesMortgage featuresInsurance Consumer advice Broadband & phones Retirement economy & banking Credit & loans Small business duty & wills Message boards Money blog Tools & calculators Ask an specialist Guides Compare & pay money forFirst-time pay money forers are being enticed to take mortgages for 100% of the possessions price - or more

Alliance & Leicester has become the latest mortgage provider to offer home loans for more than the property cost Coventry BS, Scottish Widows, and Northern Rock already do thisA QUICK MONEY MAKEOVER If you only have one miniature to learn how to kind your finances, forget the rest and read this>> Our 8-step planThis comes as the figure of first-time buyers falls to a 12-month low and after another day of property price rises despite doubts that the market might be about to freeze

These mortgages can also lend the borrower five era their income, and even as high as seven, though more usually buyers will take out about four times their incomeWhile these mortgages are to assist first-time buyers get a foot on the ladder, they should be treated with caution And with home prices having risen so high many hopeful pay money forers will still not be able to pay money forWith the average unparalleled buyer property price at £145,801, you would need to earn at least £36,000 to be clever to buy, assuming a lender would give you four times your profits, and have to create monthly repayments of at least £908

And average prices in some regions, chiefly London and the South-East, are even higher, at a staggering £243,321, sense you would need an income of almost £61,000, and would have to create repayments of at least £1,516 a monthYou also need to think the prospect of a house price fall With a 100% loan even a 1% fall in home prices will put you into negative equity - your mortgage money owing would be greater than the value of your possessionsAlliance & Leicester's Plusmortgage, which is only obtainable through brokers, is almost a carbon reproduction of the popular Northern Rock Together loan, which can give an extra quarter of the property cost in the form of a personal loan

However, its rate is cheaper than Northern Rock's, set for two years at 594% for a 115% loan, compared with Northern Rock's 659% A&L has a £999 charge on its mortgage

On a £100,000 repayment loan over 25 years this would give monthly repayments of £641, compared with £681© 2007 linked Northcliffe Digital Ltd Terms Privacy policy Advertise with us LoansCardsMortgagesInsuranceCompare the most excellent deals around with This is Money

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