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100% mortgages / bad for homeowners and the economy?

Journalist: Samantha Partingto, Freelance

ended 21. March 2025

Hi, I'm writing a story for the Telegraph. It's about 99%/100% mortgages. I have a case study of someone who has taken out the Skipton Track Record deal. 

I'm looking for a mortgage broker who DOES NOT think we should be lending at 100% LTV. 

And also if you  have concerns that we could ever get another lender like Northern Rock again - or another product like the Together mortgage.

My deadline is close of play today (Thursday 20th)

Thanks

Sam

3 responses from the Newspage community

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Editor
Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
100% mortgages are a worrying step back towards risky lending. While they help renters who can afford repayments but struggle to save a deposit, they leave borrowers completely exposed to negative equity. With no financial cushion, even a slight dip in house prices could trap them, making it impossible to remortgage or move.

We’ve seen where this leads before—Northern Rock’s Together mortgage encouraged excessive borrowing, with a £30,000 unsecured loan offered alongside a 95% mortgage, contributing to the financial crisis. The danger is that lenders start relaxing criteria further, pushing affordability to its limits. Without strict safeguards, 100% LTV lending could fuel instability rather than solve the housing crisis.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Lending at 100% LTV is a risky move. No deposit means no safety net, one market dip and borrowers could be stuck in negative equity with nowhere to turn. We’ve seen what happens when lenders get too aggressive. We still have motgage prisoners currently struggling with the recent rate hikes. We need to focus on fixing the issues some borrowers have been left with from the past rather than creating more. While regulations are tighter now, history has a habit of repeating itself if we’re not careful.
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Steve Humphrey
Adviser & Founder at The Mortgage Pod
Having reviewed numerous enquiries for 100% mortgages, none have made compelling sense to proceed. My professional recommendation tends to be to save at least a 5% deposit.

It’s crucial for buyers to experience the discipline and 'pain' of saving a deposit, which requires a sense of financial responsibility.

In my experience, there are very few scenarios where a 100% mortgage would be appropriate. Homeownership is a significant commitment, and needs to be accurately budgeted for, prior to purchasing.