Richard Mason, MD of Moneyextra.com comments on Nationwide's 125% mortgage scheme

Richard Mason, Managing Director of Moneyextra.com comments on Nationwide’s introduction of the 125% mortgage scheme.

'This is a bold move by Nationwide especially at a time when the total mortgage schemes available are dropping on an average 1% every week and remortgage products alone dropped by a fifth in June and on first glance is sure to raise a few eyebrows, however, any product that helps to get the mortgage market moving should be welcomed.

Many borrowers who are facing the grim prospect of negative equity will undoubtedly see this as the silver lining they have been waiting for, offering them the chance to downsize on their own terms, although anyone considering taking Nationwide up on their offer should obtain independent advice from a mortgage specialist before applying. 

Nationwide is the obvious choice for introducing such a high risk niche product, they have always been a responsible lender and will ensure that they underwrite mortgages based on the applicant’s ability to pay rather than their market share'

 Mortgage Data from Moneyextra.com, correct as of 9^th July 2009

Moneyextra.com recommends you take independent financial advice before acting on any article

2009-07-09 16:07:11 © Moneyextra.com