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.
