The number of first-time buyers taking out a mortgage greater than the value of their home has risen by 50%, it was claimed today.Brokers at the Mortgage Advice Bureau (MAB) said homebuyers opting for a 100% mortgage rose by 21% last year, while those opting to borrow more than the worth of their property grew by a half.
Research also indicated that around one in 10 borrowers are now choosing to borrow the entire value of their property or more.
But the news is likely to heighten concern that some homeowners couldbe stretching their finances too far and overburdening themselves with debt.
In so doing, they are likely to face greater repayment rates while leaving themselves open to huge financial risks should the price of property slump.
First-time buyers turn to 100%-plus mortgages