9 Jul

Nationwide resurrects 125% mortgage

Nationwide resurrects 125% mortgage

Nationwide has announced that it is to once again allow customers to borrow up to 125 per cent of a property's value.

The option will be available to customers in negative equity who are keen to move house.

Nationwide, the UK's biggest building society, said that the mortgage is aimed at people who would ordinarily be unable to relocate because their home loan is worth more than the value of the property

Experts have welcomed the announcement and other firms look set to launch their own versions in the next few months.

Ray Boulger, senior technical manager at broker John Charcol, said: "A number of lenders did this in the early 90s but Nationwide is the first to do it this time around."

In other mortgage news, Unbiased.co.uk has claimed that many Brits think the mortgage situation in the UK is worse than it actually is, with many lenders offering up to four times a borrower's annual income.

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