Nationwide offering 125% mortgages

10/07/2009

Nationwide Building Society is offering existing customers a special 125 per cent loan-to-value (LTV) mortgage.

The lender has introduced the product for customers in a particular set of circumstances, namely that they are in negative equity and want to move home.

Nationwide has also been keen to point out that borrowers require a minimum deposit of five per cent and only customers with strong credit records can access the loans.

Large LTV mortgages have been widely blamed for the fall of banks such as Northern Rock, but Nationwide stressed that its own product was not reckless.

"Nationwide is a responsible lender and our negative equity policy is an appropriate and prudent response to market conditions and demonstrates our continued commitment to supporting our customers," said Andy McQueen, director of mortgages at the lender.

The 125 per cent mortgage was launched early in June and Nationwide reported that there has not been a large demand for the product.

Tags; Housing Debt and Bills,

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