Coventry offers 125% mortgage

Coventry offers 125% mortgage

Coventry Building Society is offering a new mortgage deal to borrowers who are in negative equity but need to move home.

The deal will allow existing customers to borrow up to 125% of their property's value if they need to move. It is only available to people with a good credit history who have never fallen behind with their mortgage repayments.

Under the offer, customers can transfer their existing mortgage to a property of equal or lower value than their current home. However they cannot increase the size of their mortgage, nor can they borrow a larger proportion of their home's value.

The group said it expected only a small number of people to take advantage of the offer, such as customers who needed to relocate to a different part of the country for their work, or people with growing families.  Applications will be considered on a case by case basis.

Colin Franklin, sales and marketing director at Coventry Building Society, said: "As a mutual, this is what our members expect of us.”