They're kidding, right?

[Pondlife]

Nationwide offers 125% mortgage

Under Nationwide's new product, borrowers would take out a loan for 95% of the value of their new house at a fixed rate of 6.73% for three years or 7.48% for five years.

They would then be able to add on the negative equity from their old home, up to another 30% of the value of the new property, at a higher fixed rate of 7.23% for three years or 7.98% for five years.

A Nationwide spokeswoman said that the deal was "not about additional borrowing or additional risk".


Linky

FFS

[BrilloPad]

If it really is only for existing customers then I dont see an issue. Nationwide's exposure will remin unchanged.

[Pondlife]

If it really is only for existing customers then I dont see an issue. Nationwide's exposure will remin unchanged.

But they are allowing people to buy bigger houses with a 95% mortgage and bring their additional debt with them.

As I read it, that is about additional borrowing.

[gingerjedi]

The Nationwide has a strict lending policy and like most mutuals, they were never in danger of collapse.

If it were RBS lending 125% I'd be more worried.