Nationwide offers 125% mortgage.
The Nationwide Building Society has introduced a mortgage allowing borrowers to take loans worth 125% of the value of the home they are buying.
It will only be available to existing customers in negative equity who want to move house.
Negative equity means that the value of someone's home is less than the amount they owe on their mortgage.
Nationwide said the deal was a very "niche offer" and that not everyone in negative equity would qualify.
The Financial Services Authority is considering limiting mortgage loans to 100% of a house's value.
These people don’t seem to learn do they?
If you are in negative equity, the best thing to do is to stay put and wait until prices rise again, taking on more debts will not help.
Trust me I'm a blogger.
Angus
Angus
3 comments:
Yeah, I saw this on the news a day or two ago. Couldn't believe it at first - this is one of the things thatcaused Northern Rock's demise - right? And now we have another bunch of silly ***** doing the same thing! And no doubt expecting us (the taxpayer) to pay for it if things go horribly wrong. And Gordon lets them do it!!!!!!
Yep, for all his talk about "regulation" Gordo does nothing, it seems that Northern rock and the other lenders are still able to do what they like in the name of greed.
It's horrific - business (almost) as usual, as it were.
Another opportunity for long overdue root-and-branch reform of the entire banking system goes down the pan. And the bosses are still all being promised obscene remuneration packages for the admittedly incredibly difficult task of ruining businesses and fecking the rest of us about. Listen, I could do that - better, quicker and for less money!
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