Return of the 100% mortgage

FIRST-TIME buyers might find it a little easier to get on the housing ladder today after Skipton International announced it was bring back the 100% mortgage.

Prospective homeowners have found it increasingly difficult to buy since the global economic crisis struck as lenders tightened their belts.

The 100% loan-to-value mortgage has become extinct from the market during the last two years. Lenders in Guernsey have not even been offering a 95% product.

But Skipton International's director of lending Nigel Pascoe said the company was trying to help those who were struggling to save enough money to cover the deposit plus legal fees.

'We are trying to help the house purchasing process,' he said. 'It's been so flat for such a long period of time we thought this would be of great benefit, particularly to the first-time buyer.'

Its Next Generation Mortgage does, however, require a family member to act as guarantor for a maximum of 15% of the purchase price.

This money is either given in the form of a bond on the family member's own house, or in cash held by Skipton International. Interest on the money is paid to the guarantor.