Bank of Ireland pulls out of 100% mortgage market

Commenting on the last mainstream lender pulling out of the 100 per cent mortgage market, Louise Cuming, head of mortgages at moneysupermarket.com, said: "The withdrawal of 100 per cent mortgage products by the Bank of Ireland, which includes Bristol & West, has virtually shut the door on anyone buying a house with a deposit of less than five per cent.

"This is a very disappointing move by the Bank of Ireland because its product was designed around parental support and was an innovative approach to help first time buyers onto the housing ladder. The withdrawal is yet more evidence that funds are just not available for higher risk propositions.

"The only providers who will now consider lending the whole of the purchase price all have significant restrictions. Northern Bank products are only available in Northern Ireland and Teachers Building Society products are only for applicants in the teaching profession. Tipton & Coseley has a Family Assistance mortgage but it is only available on a direct basis in their branch area and depends on a collateral charge being taken against a parent's property for which independent legal advice must be taken.

"Anyone looking to get on the property ladder now needs a hefty deposit but, with rents increasing and the spiraling cost of living, building up the necessary sum is not easy."