New Nationwide mortgage gets "three cheers"

Date:Friday 10th July 2009
Author: Susanna Kavka

A price comparison site has suggested that a new Nationwide mortgage offering deserves "three cheers".

The lender is to begin providing 125 per cent mortgages in a bid to help existing customers whose finances have taken a hit thanks to the recession and falls in house prices.

Responding to the move, said it is to be welcomed.

It commented: "[The] new 125 per cent product will help its customers already in arrears but who need to move house."

The organisation added that as Nationwide already has relationships with the customers to whom it is offering the loans, it can ensure it is lending responsibly.

In addition, if the customer is in negative equity currently they already have a mortgage greater than 100 per cent before they move house.

According to, Nationwide's release of the product may force others to follow suit.

Earlier this year, Leeds Building Society launched a new two-year fixed-rate mortgage charged at 3.4 per cent.