Credit Crunch Kills 100 Percent Mortgage

We are sad to report the June 3, 2008, passing of a dear friend to millions of homeowners around the world: the 100 percent mortgage.

The 100 percent mortgage was a popular member of the mortgage product range and is survived by its brethren: the fixed-rate mortgage; the variable rate mortgage; the buy-to-let mortgage; and the rest of the property investment loan crowd. Of all the property investment products, the 100 percent mortgage was by far the most popular. It was always willing to lend a hand to first-time buyers or those with no savings and was well-known for helping people to move onto and upwards on the property ladder.

Officially conceived in the early 20^th Century, the 100 percent mortgage really came into its own during the property boom of the 1990s and early 2000s, with many mortgage providers looking to enlist its services to attract customers. Property investment had never enjoyed such success and looked to bask in all its glory. However, nobody could predict that dark days would lie ahead, and the death knell of the 100 percent mortgage would soon begin to ring out over the property investment market.

The official cause of death for the 100 percent mortgage was the credit crunch, but the sub-prime crisis of 2007 dealt the first, and what turned out to be fatal, blow. Banks and lenders suddenly began to cut the 100 percent mortgage out of their property investment-product range because of the risk factor involved. The increasing number of repossessions began to take their toll. Alas, the 100 percent mortgage was never to recover. The rejection ultimately led to its disappearance and eventual passing.

First-time buyers everywhere have been mourning the brutal death of the 100 percent mortgage and will no doubt continue to do so as the elusive property ladder moves further and further out of reach. 2008 and 2009 certainly appear to be bleak, and darker than a year has looked in, well, years! The kind and helpful 100 percent mortgage has now been replaced by a brutal dictator that demands at least 10 percent deposit on a house, thus dashing the hopes and dreams of millions of first time buyers everywhere.

Although the 100 percent mortgage is now at peace, it has left a world of turmoil behind it. It is safe to say that property investment will never be the same again, or at least not for another five to ten years until the property market picks up.