Nationwide 125% negative equity mortgage attacked

These are:

* Negative equity mortgage position;
* The need to move home;
* Satisfaction of strict lending criteria;
* Good credit record.

A Nationwide spokesman said: "We are doing something socially responsible."

But despite this the new mortgage has been criticised by some in the industry.

Nick Hopkinson, Director of Property Portfolio Rescue (PPR) said: "Nationwide’s 125% mortgage offering amounts to assisted financial suicide for today’s borrowers – sheer madness for both them and the lender.

"I expect the purpose of this latest offer is more of a marketing stunt than a feasible product, as the loan criteria and small print will make it almost impossible to access – wasting everyone’s time with false hope."

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