Northern Rock Reduces Mortgage Range

by Mark Johnston

Northern Rock re-launched a selection of its mortgage range to tempt customers looking to purchase a new home as well as those looking to re-finance their current loan.

The banks ‘Everyday’ mortgage range of fixed rate home loans have been cut and now start at just 2.88%. Its two year fixed rate mortgage has the lowest rate it has offered this year beating many of its traditional competitors. To make their deals even more attractive, they have also recently reduced their arrangement fees creating some excellent offers for new and existing customers.

Northern Rock became infamous  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.

To complement the changes to their mortgage range, they have also cut other rates to attracts the many thousands of customers who are currently sitting on their lenders standard variable rate and at the same time tempt new customers who are looking to buy a home for the first time.

The ‘Everyday’ range of mortgages are designed to offer borrowers an alternative to other home loans by offering a product that is easy to understand with competitive rates whilst providing a degree of flexibility to enable borrowers to overpay up to 10% each year without having to pay expensive early repayment fees. Any overpayment may give customers the flexibility to take payment holidays in troubled times.

Those with smaller deposits or those with little equity have not been left out in the cold this winter either. Northern Rock’s ‘Everyday’ two year fixed rate mortgage only requires a 15% deposit as it has a loan to value (LTV) of 85%. Rates start from 4.38% which was 4.89% before the recent reductions. Those with a slightly bigger deposit of 20% can cut their rate even further by taking out a two year fixed rate mortgage at 3.98% which also has been cut from 4.39%. Both mortgages require a £995 arrangement fee.

Borrowers who are looking for reduced fees and flexibility can take advantage of Northern Rocks fee saver options. Customers can apply to take advantage of flexible options which offers some customers the ability to make overpayments without having to pay any additional charges. These overpayments can be used to cover payment holidays or underpayments in the future so that overpayments can be borrowed back by the customer.

To further entice customers into their new range of mortgages, Northern Rock offers a free basic valuation and free legal costs for those looking to remortgage.

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