Experts and regular people with common sense can have criticized Barclays for offering a mortgage that does not require buyers to pay a deposit.
Analysts say that the 100% mortgage is “crackers” and will only encourage people to buy property that they cannot afford. The mortgage will allow first-time buyers and home movers to take out a mortgage without paying the normal 5% deposit, writes Hazel Sheffield for The Independent, under the great headline “Barclays’ first no deposit, 100% mortgage since financial crisis ‘will help people buy property they can’t afford'” which could only be better if he added “What Could Go Wrong”.
Barclays criticized by housing experts
Henry Pryor, buying agent and housing market commentator, has called the mortgage a “financial grenade.”
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“The premise is crackers. If this achieves the marketing hit that Barclays are after it’s a risky strategy because there are enough of us who remember who got us into the septic tank of financial crisis in 2008,” Pryor said.
Pryor expressed his surprise that the Bank of England has not clamped down on the mortgage using powers it gained after the financial crash, designed to help it prevent risky lending.