by Mark Johnston
Northern Rock, famed for being the first bank in 150 years to suffer a bank run had to approach the bank of England for a loan at the height of the banking crisis. Having failed to find a buyer for then business it was taken into public ownership in 2008.
Since then the bank has been working hard to rebuild its business and have recently launched a new mortgage product to UK borrowers. Their ‘Everyday’ mortgage range is designed to offer a choice of mortgages to those either look to purchase a home or re-mortgage their current property. Their rates start at just 3.09 percent for a fixed rate mortgage and 2.89 percent for a tracker.
The great thing about their new ‘Everyday’ range is that they offer the ability to apply for a payment holiday in times of financial difficulty. On the flip side, customers are allowed to over pay their mortgage up to a maximum of 10 percent per year when times are good and borrowers have more free cash.
The bank is due to launch a marketing campaign to promote its new mortgage products which includes a customer prize draw which borrowers are entered into when they complete their application. Lucky winners get a fantastic home makeover to transform their new property.
Lloyd Cochrane, the Head of Mortgage Products at Northern Rock commented on the launch and promotion by saying: “Buying a new house can be very exciting, but making your new house your home can also be expensive. Northern Rock understands this and so, as well as making rate cuts across our Everyday range of mortgages, we are offering one lucky mortgage customer the chance to win a fantastic new home makeover which we hope will help things along a little.”
The new range has been described as a great deal and offering customer value for money. The comments were made by Martyn Smith head of mortgages at Legal and General. He said: “This product is extremely competitive and gives advisers an opportunity to take advantage of the continuing low base rate,” he said.
The new range of mortgages could provide a lifeline to those looking for peace of mind in the current uncertain climate.
Their two year Everyday tracker mortgage is available at 2.89% which tracks the base rate of 0.5% plus 2.39%. After the 2 year period the rate reverts back to their standard variable rate which is currently 4.79%. Northern Rock charge a £995 product fee and offer the loan on a 70% loan to value ratio.
Northern Rocks 2 year fixed rate version is 3.09% until 1st December 2012 and again reverts to their standard variable rate which is currently 4.79%. The loan to value is 70% so a 30% deposit is required. On this basis a £100,000 mortgage would require £30,000 deposit. Those still interested can find out more by visiting Northern Rock’s website.
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