UK push to ban 100 per cent mortgages

The days of 100 per cent mortgages could be numbered, with British prime minister Gordon Brown seeking to have the products banned in the UK.

According to The Sunday Times, the prime minister wants to force home buyers to stump up at least a 5 per cent deposit.

“We want to see the reinvention of the traditional savings and mortgage bank in Britain, making loans on prudent and careful terms,” Mr Brown said.

The announcement coincides with a series of measures announced by the British government including plans for the Bank of England to print up to £100 billion (A$223 billion) in cash to stimulate lending activity.

The financial crisis has seen mortgages with LVRs of 100 per cent or more effectively withdrawn by all banks and building societies in the UK but it had been hoped they would return, The Sunday Times reported.