moneysupermarket.com comments

on the flurry of providers exiting the 100 per cent plus mortgage market

Commenting on the flurry of providers exiting the 100 per cent plus market, Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: "With so many prominent lenders exiting the 100 per cent plus mortgage market this week consumer confidence is going to be knocked again.

"Lenders including Alliance and Leicester, the Abbey, and Coventry and Godiva have always ensured stringent credit checks are carried out on borrowers applying for 100 per cent plus mortgages.

Therefore, we must conclude the rationale for pulling out of this part of the market is due to concerns over falling property prices.

"First time buyers will be hit hardest, with repayments likely to shoot up when they come to re-mortgage.

At a time when consumer confidence is so low, it is disappointing that lenders are adding to the panic.".

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