Almost half of us back 100% mortgages for young buyers

A YouGov survey has revealed that almost half of the UK population back the idea of re-introducing 100 percent mortgages into the lending market.

The pollster quizzed almost 10,000 adults across the UK to gauge their opinion on the topic.

Mortgages of 100 percent were common in the property market until the 2008 financial crash. Since then lenders have applied much stricter criteria and demanded first-time buyers have a minimum 5 percent deposit.

YouGov asked its respondents: “100 percent mortgages (where homebuyers do not require a deposit because banks lend them the entire cost of a home) may be re-introduced to help young people into the housing market. Do you think this is a good or a bad idea?”

Of those polled, 48 percent said 100 percent mortgages are a good idea; 32 percent said they are a bad idea; and 20 percent said don’t know in response to the question.

When split by age, there was a fairly even split across respondents: In the 18-24 age group, 46 percent said good idea to full mortgages, rising to 48, 49 and 49 in the 25-49, 50-65 and 65-plus age groups, respectively.

Meanwhile, more women (52 percent) than men (44 percent) back the idea.

A report in October from the Building Societies Association suggested lenders should consider reviving 100 percent mortgages to relieve the pressure on young buyers and also on the Bank of Mum and Dad.

Some lenders do offer a full mortgage, but these come with strict criteria and conditions.