Coventry Building Society has become the first mortgage lender to offer a 100 per cent mortgage in the aftermath of the credit crunch and the offer is likely to be a real lifeline to those who need it.
At the height of the mortgage boom, mortgage lenders such as the Abbey, Alliance & Leicester, Northern Rock and Coventry Building Society offered borrowers mortgages of up to 125 per cent of the property value. As house prices have fallen around 10 per cent since that time, many homeowners are finding themselves in negative equity. Unable to remortgage due to the lack of equity, these homeowners have little alternative but to go onto the Standard Variable Rate (SVR) of their current mortgage lender. They are unable to remortgage and cannot afford to sell up either.
This offer from Coventry Building Society is a five year fixed rate mortgage, covering up to 100 per cent of a property value and has no arrangement or booking fees either.
Those undertaking CeMAP training or becoming mortgage advisors in the Birmingham area will be familiar with Coventry Building Society. Other mortgage lenders have yet to follow the building society’s lead.