The new 100% mortgage offering has a maximum loan size of GBP500,000 and requires no deposit. It is open to any homeowner, but Abbey claims that it is most likely to be useful to first time buyers, as well as people who have recently separated and are struggling to raise a deposit to get back onto the housing ladder.
Furthermore, there is no higher lending charge and the mortgage can be offered as a two-, three- or five-year product.
Ricky Okey, managing director at Abbey for intermediaries, said: We wanted to develop a product which helps people who are struggling to get onto the housing ladder. Given that the average price of a house in the UK is now well above the GBP200,000 mark, it was important to us that we offer people the opportunity to take out a sufficient size loan without demanding a deposit.
All Abbey’s mortgage lending is subject to our rigorous affordability criteria and we make every endeavor to ensure that no-one borrows more than they have the ability to repay. This is even more important when you are dealing with no deposit mortgages, so people can rest assured that we will be lending responsibly.
