The Intermediary – March 2026 - Flipbook - Page 46
THROWING
DOWN THE
LADDER
WILL 100% MORTGAGES REALLY
HELP ASPIRING HOMEOWNERS?
Natalie Thomas for The Intermediary
After almost going extinct in the aftermath
creates a real opportunity for borrowers – but
seen a resurgence in 100% loan-to-value (LTV)
only with the right advice behind it.
mortgages. Family Building Society and Melton
Building Society are among the latest lenders to
Headline grabbing
launch 100% products, joining April Mortgages
While the launch of any 100% LTV mortgage is
and others already in the space, while larger
guaranteed to grab headlines, the actual product
lenders such as Santander have moved into the
count remains small.
98% LTV market.
For deposit-strapped first-time buyers (FTBs),
Moneyfacts figures show just 19 products at
100% LTV as of 1st March 2026 – against a total
these products represent a long-awaited chance
market of 7,484. Even so, that is almost double
to get on the housing ladder. Research by the
the 10 available in March 2025.
Home Builders Federation, for example, found
So, who is borrowing at 100% LTV? One might
that after covering rent and bills, the average
assume it’s just first-timers, but Mark Harris,
FTB in England would need to save half their
chief executive of SPF Private Clients, maintains
remaining monthly income for nine years to
that this is not the case.
afford a typical deposit – rising to over 13 years in
London and the South East.
The resurgence of 100% LTV mortgages
inevitably draws comparisons with the pre-2008
era. Critics warn that borrowers risk slipping into
negative equity if house prices fall – while paying
a premium for the privilege.
Supporters counter that today’s products bear
“It may be helpful for existing homeowners who
have low levels of equity in their properties, so
there is a limited deposit available for their next
home,” he observes.
“Those who have recently divorced or separated
may also find that one or both parties have a
limited deposit following the division of assets.
And some buyers may have family support in the
little resemblance to those that fuelled the crisis,
form of a secured deposit or equity in a property,
when high-LTV lending was widespread, and in
but who don't want to supply cash for the deposit,
some cases, loosely underwritten and unchecked.
or who can’t do so.”
In their view, modern affordability rules and
44
For brokers, the return of high-LTV lending
of the financial crisis, the market has recently
He is firmly in favour, adding: “High-LTV
regulatory oversight make a return to those
lending enables those without financial
practices almost impossible.
assistance from wealthy parents or other family
The Intermediary | March 2026
