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
Irish IndependentHome truths: How the vote will affect youIrish IndependentMark O'Regan examines the potential effects — both negative and positive — that may 1 Mark O'Regan examines the potential effects — both negative and positive — that may be felt here in the wake of Britain's decision to sever ties with the EU ...and more »
Poll-axed by our 'yes' to EU divorceThe Times (subscription)... market-based pension had shrunk by more in cash terms than I had ever lost before in a single day. Partly because share prices had risen earlier last week on City hopes that “remain” would win, the value of my self-invested personal pension (Sipp ...
This is MoneyWhat Brexit means for your finances: Savings that can be made - and steps you can take to protect the family financesThis is MoneyMeanwhile, stock markets have responded negatively, not just here in the UK but across Europe and the rest of the globe, impacting adversely on our pensions and investments. .... And he thinks this could have a major effect on people's personal finances.
Telegraph.co.ukMoney, holidays and shopping - what will Brexit mean for you?Telegraph.co.ukIt said on its website: “We have temporarily suspended our travel money website following unprecedented customer demand for foreign currency overnight and this morning. We apologise to all ... Ditto, Europeans living and working in the UK. ... What ...and more »
Babble (blog)EU referendum: Battle to be Brexit Prime Minister heats up as Tory MPs question Boris Johnson's leadership credentialsTelegraph.co.ukAs the flags of European nations lead the annual Pride parade in London the referendum result is hot on everyone's lips. Thousands of people are taking part in this year's event, a day after the UK's vote to leave the the EU was announced. Some of ...What Brexit Means for My Family Living in the U.K.Babble (blog)How Brexit could affect your investments and pensionThe Week UKall 11,743 news articles »
Have you met...
Latest Members:


marwasaf


lolo


danny


midomidi2013


asmaasaad


shazly


ser1es

 

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