Similar to Sykes, Dockar noted that 100 per cent mortgages will be better suited to those with above average incomes for their region.
“This is because most lenders will only lend up to five times loan-to-income. But currently, the cost of a home in the UK is running at approximately eight times the average person’s income, and more like 13 times in London,” Docker explained.
“Historically, these types of customers are already positioned to accumulate a deposit and weather downturns better, as higher earners tend to have greater financial resilience.
“Of course, banks will run extensive affordability checks on any prospective borrowers, meaning the lender will be confident in the buyer's ability to pay the mortgage,” Docker said.
He added: “I’m hopeful that 100 per cent mortgages will help more people onto the ladder.”
jane.matthews@ft.com
