Nationwide Building Society has announced a new mortgage offering allowing it’s existing borrowers to take loans worth 125% of the value of the home they are buying.

The mortgage will only be available to current customers whose property has fallen into negative equity but who also want to move house.

Under the 125% mortgage plan, borrowers would take out a loan for 95% of the value of their new house at a fixed rate of 6.73% for three years or 7.48% for five years. They would then be able to add on the negative equity from their old home, up to another 30% of the value of the new property, at a higher fixed rate of 7.23% for three years or 7.98% for five years.

Nationwide said that it’s offering is very “niche” and that not everyone in negative equity would qualify.

Currently, new Nationwide customers applying for a mortgage are only entitled to up to 85% of the value of the property.

Negative Equity?
Negative equity is when the value of someone’s home is less than the amount they owe on their mortgage