100pc mortgages return to the market

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8694426/100pc-mortgages-return-to-the-market.html

Northern Bank, which operates in Northern Ireland, is offering the loans subject to affordability, although borrowers do not have to belong to a special group, such as professionals who can expect to earn high salaries in future, in order to be considered.

The bank does not offer mortgages in other parts of the UK.

Previously, buyers without a deposit normally had to rely on help from parents via a guarantee.

With “guarantor” mortgages, the home loan is effectively underwritten by the parents. So if you fell behind with monthly payments, this means that they would be obliged to pay.

The advantage of such schemes is that parents don’t have to stump up cash sums upfront and it can enable you to borrow more. But if you run into financial problems, this can affect your parents’ ability to get credit and potentially put their home at risk. Your parents would need to have sufficient income and/or equity in their home to be an effective guarantor, so not all first-time buyers would be able to obtain one of these mortgages.