Northern Rock reduces residential and buy-to-let mortgage interest rates

July 24, 2010 by Brendan O'Neill

News

Today, Northern Rock has made a number of changes to its buy-to-let and Everyday residential mortgage deals, by reducing its interest rates for longer term deals and reducing its buy-to-let product charges.

The Everyday range of mortgages gives customers a very simple deal with limited flexibility but competitive rates. The deal allows overpayments of anything up to 10 percent per year and allows a payment holiday option.

The new rates include an Everyday 5-year fixed product starting at 4.39% for those with a 30% deposit and 4.50% for those who have a 25% deposit. Each has a product fee of £995.

The 2- and 3-year fixed rate deals have also seen reductions with the 2 year deal now starting from 3.15% and the 3 year deal starting at 4.10%. Again, each has a £995 fee and these interest rates are available for those with a 30% deposit.

Buy-to-let product fees have been reduced by up to 0.50% and the 2 year fixed rate buy-to-let deal now starts at 5.69% for those with a 30% deposit, with a 2.0% fee.

The lender still offers products for those who want to keep the buying costs as low as possible at the outset and there is also a Flexible range where borrowers are able to apply for other Northern Rock flexible options such as unlimited overpayments and underpayments.

A broad mortgage deal range such as this helps mortgage advisors to find the best deals that most closely match the needs of a borrower; as a delegate will learn on their CeMAP course when training to become a mortgage advisor.
Northern Rock still operates under the imposed competitive constraints as agreed with the European Commission.