Nationwide brings back 95% mortgage

poppy10_2

Nationwide, Britain's biggest building society, has become the first lender to re-introduce mortgages worth up to 95 per cent of a property's value.
But the new home loans, which are only available to existing customers who are moving house, come at a high price.

Borrowers wanting a 95% LTV deal will have to pay 7.18% - that's 5.18 per cent above the Bank of England base rate.
Meanwhile borrowers with a 40% deposit will pay only 5.38%.

Nationwide also unveiled new tracker deals yesterday. A new two-year tracker for 95% LTV is 5.49%, 3.49 percentage points above base rate.

Nationwide's best tracker deal for customers with a 40 per cent deposit is 4.49 per cent, 2.49 percentage points above base. This is also almost double the rate of its previous 95 per cent loan-to-value tracker deal, which was available in August, at 1.78 above base.

jayremoh

boe + 5.18% !!!!???!!!

holy merciful crap!

koexelek

poppy10 wrote: »

Borrowers wanting a 95% LTV deal will have to pay 7.18% - that's 5.18 per cent above the Bank of England base rate.
.

They know beggars can't be choosers in the current market

_Andy_

jayremoh wrote: »

boe + 5.18% !!!!???!!!

holy merciful crap!

Granted it's hardly a bargain, but 95% in a falling market is a significant risk to the lender.

chunkytfg

so with current trends you'll be in negative equity within 12 months

Squish_21

Hope they bring back 95% on more mortgage deals and with better % rates!

couldnt have got my current mortgage without that option.

lethal0r

you could get a secured loan for 6.9% a couple of years ago!

I wonder if this offer is as a result of government pressure.

caracal_77

chunkytfg wrote: »

so with current trends you'll be in negative equity within 12 months

4 months you mean?

grogdog

_Andy_ wrote: »

Granted it's hardly a bargain, but 95% in a falling market is a significant risk to the lender.

i know we all say it is a falling market, but i am sure you are aware that the valuations these lenders are putting on properties at present are taking these anticipated drops well in the equation. so i feel more of them should be offering the 95% deals to get the market going again. and if someone cant affords these rates then they shouldnt be buying in the first place.

poppy10_2

grogdog wrote: »

. and if someone cant affords these rates then they shouldnt be buying in the first place.

If someone can't afford a 10% deposit they shouldn't be buying in the first place.

opinions4u

poppy10 wrote: »

If someone can't afford a 10% deposit they shouldn't be buying in the first place.

Should that apply to somebody who has paid off 10% negative equity on their existing house and found a 5% deposit for their new house?

I think your view is a little generalistic.