Rates on its buy-to-let two-year flexible fixed rate have been cut by 0.30 per cent and are now available from 4.99 per cent. The rates on its ‘together’ range, which combines a secured home loan with an unsecured personal loan, have been reduced by 0.20 per cent and now start at 5.89 per cent.
There are no higher lending charges (HLCs) across all products, no extended early repayment charges (ERCs) and a ‘fee saver’ option, which allows customers to choose to pay a higher rate of interest in exchange for not paying a product fee on the mortgage.
Income multiples have also been enhanced. Multiples for joint applicants with a high credit score have been increased by 0.5 to equal those available to single applicants.
Allison Thompson, marketing director for Northern Rock, said: “The reduction in rates on our ‘together’ range will appeal to all types of borrowers, but especially first-time buyers looking to step on to the housing ladder. ‘Together’ offers customers the option to take an unsecured loan of up to £30,000 at the same rate as their mortgage. This loan could be used for paying Stamp Duty tax, furnishing a new home or to consolidate other debts.
“We believe that all the features offer a very attractive overall product proposition that will appeal to a broad range of customers and mortgage intermediaries.”
Roy New, a sole broker, welcomed the changes. He said: “All rates are decreasing and it seems to be the way the market is currently going. The rates sound good and the income multiples are excellent. Northern Rock is coming in line with other mortgage lenders, especially if there are no redemption charges in the deal period.”
