Last 100% mortgage to disappear
The final 100 per cent mortgage is to be withdrawn from the UK high street, it was revealed yesterday.
Abbey's deposit-free loan - which lends the entire cost of a property to borrowers - was taken off the market due to "current market conditions".
The spokesperson added: "We are withdrawing our 100 per cent loan to value mortgage until further notice…[this is] in line with recent moves by other lenders."
Tightening lending conditions and mass withdrawals of mortgage loan deals by banks and building societies has been a feature of the ongoing credit crunch.
The mass withdrawals of 100 per cent loans followed the disappearance of 125 per cent mortgages - a home loan that lent the entire property cost, along with an extra 25 per cent in the form of a personal loan.
Since the beginning of the financial crisis last summer, around 60 per cent of the different mortgage deals on the high street have disappeared according to research from Moneysupermarket.com.
The loan is to be officially withdrawn by Abbey tomorrow - with the firm also increasing interest rates on its other mortgages by up to 0.35 per cent.
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