125 per cent loan to value mortgage offered by Nationwide

Fri, 10 Jul 2009

Nationwide Building Society has introduced a new mortgage with a market-leading loan-to-value of 125 per cent, despite the risks associated with such lending.

In March, the Financial Services Authority introduced regulations to put an end to the risky mortgage lending which resulted in the credit crunch, but Nationwide insists it is a "very prudent and cautious" broker with low arrears and repossession statistics.

The mortgage is only available to new customers who are in negative equity, need to move home, meet the lending criteria and have a good credit record.

Andy McQueen, director of mortgages at Nationwide, said: "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."

Mortgage lenders recently started to alter their criteria to allow higher loan-to-income values on their deals, according to financial advice website Unbiased.co.uk.
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