125 per cent Mortgages and Remortgages are no longer available

 Up until the spring of 2008 these mortgages were available to first time buyers, next time buyers or someone wishing to release the equity in their home, by remortgaging, without moving house.

It enabled a home owner to consolidate debts, pay off credit card bills, or raise money for any legal purpose.

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

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, they proved exceptionally popular.

Main Points
The mortgage was flexible to allow overpayments without penalty
There was NO Higher Lending Charge to pay
Issued by Northern Rock
Daily interest calculations
 

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 usually higher than on sub 100% mortgages.
You would be borrowing 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.