Nationwide has said that the mortgage is only available to existing customers in negative equity who want to move home and borrow more.
These customers would be offered the building society’s 95% LTV deals, with rates of 6.73% fixed for three years or 7.48% fixed for five years. Interest rates for the additional borrowing of up to another 30% then rise to 7.23% and 7.98% respectively.
A Nationwide spokeswoman defended the deal, saying: “All we are doing is allowing them to carry across the negative equity they already have.
“It's not about additional borrowing or additional risk. The maximum borrowing we would consider is 125% overall, but that doesn't mean someone can automatically get that. We would go through our normal procedures, looking at income, outgoings and so on.”
Leave a comment