Nationwide launches negative equity mortgage

The offer has raised eyebrows in some quarters, after Northern Rock received widespread criticism for its own 125% mortgage deal. Existing mortgage customers who want to move will be able to borrow up to 125% of the value of a property, enabling them to use the additional cash to make up for any negative equity. Nationwide says the deal is very ‘niche' and will only be offered to a small proportion of borrowers in negative equity. The product consists of a 95% mortgage loan, with fixed rates of three or five years, an additional 30% can then be borrowed based on any negative equity...