Nationwide Building Society, the U.K.'s largest customer-owned lender, is offering 125% loan-to-value mortgages to customers whose borrowings exceed the value of their home.
Existing customers of Nationwide who have negative equity may borrow up to 95% of the value of a property, along with 25% of the loss on an existing home, Rachel Jensen, a spokeswoman for the Swindon, England, company, said in a telephone interview Thursday.
Customers will still need a 5% deposit, she said.
"We are not relaxing our lending criteria in any way," Jensen said. "We still do the normal checks to make sure they can repay the loan."
