The primary income multiple for all 100%+ mortgages has increased from 3.25 to 3.75. This is good news for first time buyers, many who find that wage increases are being outpaced by house price inflation.
Mortgage Express has also launched a 3 year fix product in the 100%+ mortgage range at a competitive pay rate of 5.65%. Fixed products have traditionally been popular with first time buyers, a market that looks for stability in their mortgage repayments.
In a further move, Mortgage Express has increased proc fees on all 100%+ products, effective on completions from 1 February 2004.
The Council of Mortgage Lenders recently announced that first time buyers accounted for an historic low of 9% of gross lending in 2003. By removing the need for a deposit and increasing borrowing power, Mortgage Express' 100%+ mortgages are helping more first time buyers get onto the property ladder.
Mary Sung, product development manager at Mortgage Express says: ''The increase in income multiples is in recognition of the low, stable interest rate environment we're currently in. Homebuyers can afford to borrow more at current and foreseeable interest rates''.
''We review our products regularly to ensure they reflect what is happening in the market. The changes to the product are consistent with the industry and evidence of our commitment to helping first time buyers'' Mary adds.
Mortgage Express is the specialist lender of Bradford & Bingley and in 2003 was joint winner of the Your Mortgage Best 100% Mortgage and finalist in Moneyfacts Best 100%+ Mortgage.
