125% mortgages are back

Dan_1976

I am sure Nationwide will dish them out in the right way. Some cases will warrent them.

The FSA or Gevernment should keep an eye on this and when we are on the other side of Neg equity stop them.

opinions4u

Dan_1976 wrote: »

I am sure Nationwide will dish them out in the right way. Some cases will warrent them.

The FSA or Gevernment should keep an eye on this and when we are on the other side of Neg equity stop them.

I would think rising property prices will, eventually, make the product redundant anyway.

The scheme only allows existing negative equity to move from one property to another.

It doesn't allow for a higher LTV than already exists.

It doesn't allow for an increase in £value of negative equity either.

The risk simply moves from one property to another.

It is a totally logical way to improve the housing market without taking on poor quality lending. It doesn't need any further regulation than already exists becasue customers and lenders aren't any more exposed than they are currently.