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 ...
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at
BBC NewsCall for stricter rules on doorstep loansBBC NewsPeople who borrow money from doorstep lenders should get the same protection as those with payday loans, a charity has argued. Citizens Advice said copying the rules that stop payday loans being rolled over time after time would stop others falling ...and more »
Daily MailOne in seven second steppers `relying on money from family to buy next home´Daily Mail... of mortgages, said: “There is a great deal of focus on the difficulties facing first-time buyers trying to get onto the property ladder but, as the research shows, second-time buyers are facing a variety of difficult challenges of their own. “Many ...and more »
The TimesTo get back on track, a bank account is essentialThe TimesWe want to ensure that high-quality, impartial information on personal finance is as accessible as possible. The creation of the new single financial guidance body will merge three services — financial guidance, pensions guidance and debt advice ...and more »
Business Insider11 signs you're going to be wealthy, even if it doesn't feel like itBusiness InsiderAt least according to Warren Buffett, who considers cryptocurrency a get-rich-quick scheme. Though chances are slim you'll end up with the multi-billion-dollar fortune Buffett has, there are sensible ways to build wealth without betting on a bubble. It ...and more »
Have you met...
Latest Members:

mahmoud fawzy








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