NATIONWIDE FIRST TO LURE BORROWERS IN NEGATIVE EQUITY WITH MORE CASH TO BUY HOUSES
The Nationwide Building Society are to offer new customers who are currently in negative equity up to 125% LTV when they are looking to move house. This move has sparked much debate with some analysts suggesting that this is the return of irresponsible lending on the high street. Others suggest that the only way to increase the number of house sales quickly is for lenders to offer flexible products.
It is our view, that this move is a welcome measured step from a leading lender responding to the recent perceived stabilisation in the housing market. Nationwide will only offer these ‘medium term fixed rate loans’ to borrowers who meet strict affordability criteria as well being able to show they can pass long term income stress tests.
In the last two years many people looking to sell their house fast have been frustrated when they have found a buyer that has subsequently quickly pulled out the property sale out due to their inability to secure credit. The CML figures for mortgage lending are still depressed, showing a 28% decrease in monthly loans taken out compared with this time last year
Estimates suggest that over 1 million people are currently in negative equity with little chance of them securing further lending in order to raise the cash to buy a house. This move by Nationwide could be an indication that there is some much needed competition returning to the mortgage market.
If you currently have your house for sale and are still looking for that illusive buyer who will offer cash for your house, make an enquiry now with Rapid Home Solutions. A quick property sale with Rapid home Solutions ensures commitment with days and completion within weeks.
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The opinions expressed in all news articles are those of Rapid Home Solutions Ltd. The material is for general information only and does not constitute investment, tax, legal or any other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. |