125 Per Cent Loan To Value Is Back Again!
Following the recent financial crisis and problems in the banking sector as a whole, there has been much finger pointing and blame aimed in the direction of banks and building societies, particularly in the area of bad credit loans, self certification of income and high loan to value ratios in excess of 100 per cent of the purchase price of the house.
As a result of the credit crunch, the majority of lenders have seriously reviewed their lending criteria and reduced their loan to value levels, making it much harder for an individual to be able to obtain the loan they require.
But now the Nationwide building society have introduced a loan product which offers borrowers up to 125 per cent loan to value on their purchase. But before you all get too excited and start running down your local high street to sign up for this deal, it is only being made available to existing Nationwide customers who want to move and are currently unable to do so because of negative equity.
Jennifer Williams of the Nationwide explained the details, she said “This offer is for our own customers, we do not take remortgage customers who are coming from one lender to us. This is for existing customers who are needing to move but are in negative equity and they will have a restricted choice of the three or five year fixed rate for home movers.
Borrowers can take 95 per cent loan to value on the main loan and then pay an additional premium on any more above 95 per cent to a maximum of 125 per cent. It is not like we are advertising loans for remortgage customers or anything like that. It is very specifically for our customers who are in negative equity. It is just available for people in those circumstances who want to move but need to borrow more. It will be a case of talking to us and we will assess individual situations, we will not automatically go up to 125 per cent and that is our complete cut off.”
