Mortgages Uncovered

Both Bank of Scotland and Halifax are now offering brand new mortgage deals for their existing customers who have zero equity in their homes!

Both lenders discreetly extended their LTV’s on some of their recent mortgage packages in order to keep their customers who are reaching the end of their tracker or cheap fixed.

Now borrows with no equity at all and even those that may own money on the value of their home do qualify for those loans that are aimed at people with deposits of a minimum of 5%.

In recent times mortgages which allow home owners to borrow 100%of the value of their properties have completely disappeared from the market whilst plummeting house prices have increased the further threat of a longer period of negative equity.

A Halifax spokeswoman said;

“it is important to offer a range of options for customers coming off existing deals, even if their equity had been wiped out. Borrowers who are not offered a new deal when their existing one expires have to revert to their lender’s standard variable rate (SVR). While these are low at present – Halifax charges 3.5 per cent, for example – there is a risk that if interest rates rise sharply, borrowers may be stuck with unaffordable mortgage payments.”