Abbey, the Spanish owned bank and the last remaining leading lender to offer 100% mortgages, is withdrawing its 100% range from the market from Wednesday. Meanwhile, other lenders continue to cap their maximum loan-to-value ratios, putting even 95% mortgages under threat. Cheltenham & Gloucester, Alliance & Leicester and Britannia now offer maximum loans of 90% [...]

More: Abbey withdraws 100% mortgages

So the final nail has been knocked in.

When the BOE meets to discuss base rates this week which way will they decide to go? They could opt to cut the rate again, but would this really make any difference? my guess is that a house price crash is inevitable as we follow the US down the same slippery slope. The banks have so far set their rates higher despite successive cuts in the central bank baserate. Along with the demise of the 100% mortgage, this will effectively cut off any hope for first time buyers.