The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
Telegraph.co.ukHelp to Buy Isa bonus: buyers had no idea it wasn't for a depositTelegraph.co.ukUsing the money to reduce the size of a mortgage at completion is less valuable. Help to Buy Isas were warmly welcomed as a way to help first time buyers amass a deposit. The accounts allow savers to deposit £1,200 in the first month and contribute a ...Help to Buy Isa: how the bonus payment really worksWhich?all 3 news articles »
Telegraph.co.ukGeorge Osborne's legacy of botched and half-baked taxesTelegraph.co.ukBecause the house had a mortgage on it, the transfer was subject to stamp duty, even though it was a gift within marriage. Before the transfer Mrs Ahmed didn't own ... The move was greeted with delight from predictable voices on the left, who foolishly ...and more »
The GuardianA delayed flight could leave you without your rental car and depositThe GuardianThe family returned to England but, a few days later, Rees checked his credit card statement for the €92 refund. “They took €150 from the credit card ... “Everyone was totally gobsmacked when I told them that Holiday Autos had refused to refund me the ...
This America, this house divided ... cannot standThe Market OracleDon't ever question the usury of bankers who manipulate the money supply, dominate the markets, set interest and finance rates and have weaved almost every American into a web of life-long debt? Don't ever ... Disregard any fall in pension payments ...
What the future of pensions looks likeInteractive InvestorBy being able to look at all their pension pots on one platform, consumers will be able to gauge the money they've built up for retirement so they are better placed to plan for the future. ... A dashboard allowing individuals to input personal ...and more »
Have you met...
Latest Members:


hannamarin


nermine


ahmed


planckster


0552037117


devdeep


minhthu2608

 

General News

Email this story to a friend:

Nationwide’s 125% mortgage.

You may have seen reports that the Nationwide Building Society is bringing back 125% mortgages09-07-2009
You may have seen reports that the Nationwide Building Society is bringing back 125% mortgages – that is loans of a quarter more than the value of the properties they’re being used to buy.

These high ‘Loan to Value’ mortgages are blamed by some for getting us into a sticky mess with the housing market in the first place. But if you read the details of this loan there seems no reason to believe that irresponsible lending is making a comeback.

The Nationwide will only offer this mortgage to existing customers who are in negative equity (the value of their home is less than the amount they borrowed to buy it) but need to move. New customers won’t be eligible. They have to put down a deposit of at least 5% of the value of the property they’re buying and can borrow a maximum of 95% of its value.


Nationwide says the 125% loan will be available from the 10 June 2009 for existing customers who:

- -        are in negative equity

- -        need to move home

- -        meet strict lending criteria and

- -        have a good credit record.

Borrowers in these circumstances will be able to transfer part of their existing negative equity with them when they need to move home. Both the main loan and the associated negative equity top-up are restricted to three and five year fixed rate deals:

       *       Main loan up to 95% LTV: 6.73% (3 year fixed) and 7.48% (5 year fixed)
       *       Top-up loan covering 100-125% LTV: 7.23% (3 year fixed) and 7.98% (5 year fixed).

Other lenders are said to be considering offering similar deals to get the market moving again but the Nationwide says it doesn’t expect demand to be high.  
 

Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks