Adverse Mortgages UK

First-time buyers can sometimes benefit from a 100 per cent plus mortgage providing they are equipped to make the repayments, it was suggested today.

Dominic Mansley, managing director of independent financial advisers Key Financial Consultants, said the ideal situation for a first-time buyer to be in is to have saved enough money to cover legal fees, stamp duty and a deposit before embarking on a property purchase.

Mr Mansley conceded this is not always possible and that in these circumstances a 100 per cent plus mortgage can help people who want to get onto the property ladder quickly.

However, he warned that such large mortgages are only suitable for a small section of potential buyers, typically newly-qualified professionals who can realistically expect a much higher income later in life.

"We would however feel less comfortable recommending to perhaps a non-professional that they get themselves into such a heavy debt … it's very much down to the individual's circumstances," added Mr Mansley.

Figures compiled by the Council of Mortgage Lenders show that in the second quarter of 2007, the average first-time buyer is a 28-year-old with a salary of £35,000 and needs to borrow 90 per cent of their property's value.

© Adfero Ltd

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