125% Mortgages and Remortgages withdrawn

 It meant that you could  borrow up to 125% of the property value and was available to first time buyers as well as second and subsequent buyers

 Once available to first time buyers, next time buyers or someone wishing to release the equity in their home, by remortgaging without moving house, the 125% mortgage has been withdrawn.

125% remortgaging enabled a home owner to consolidate debts, pay off credit card bills, or raise money to help a child with a deposit for their first home.

In fact the extra money could have been for "any legal purpose".

125% mortgages were particularly useful when property prices were rising faster than the speed at which a deposit can be saved.

First time buyers could borrow enough to buy the house, pay the solicitor, stamp duty, and still have enough to decorate or furnish.

125% mortgages were made up of a maximum of 95% secured against the property (a mortgage) and up to 30% (or £30,000, whichever is the lower) as an unsecured loan, but with the same mortgage interest rate applied across both parts.

125% mortgages were available on fixed or variable interest rates, with the flexibility to overpay without penalty

The 125% mortgage came with NO Higher Lending Charge fee to pay.

The 125% mortgage had daily interest calculations.

125% mortgage was available from the High Streets third largest lender - Northern Rock

Main Points
The mortgage was flexible to allow overpayments without penalty
There was no Higher Lending Charge to pay
3rd largest U.K. High St lender
Daily interest calculations
DECISION IN PRINCIPLE AVAILABLE IN MINUTES

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

On the negative side
The interest rate was higher than on sub 100% mortgages.
You would have be borrowed more than the value of the property (a maximum of 95% as a mortgage, and a maximum of 30% (or £30,000 whichever is lower) as an unsecured loan.