A two-year fixed rate is available at 4.59 per cent with a product fee and 4.94 per cent with the fee saver option. Both products are available up to 85 per cent loan-to-value (LTV).
There are no higher lending charges (HLC) or extended early repayment charges (ERC), and the products feature unlimited penalty free overpayments, underpayments, and borrow back overpayments at the product rate. There is also the option to take payment holidays, even if customers have not previously overpaid. The products will not have the £700 Help With Costs option.
Allison Thompson, marketing director for Northern Rock, said: “These products will be suitable for borrowers looking to keep their monthly payments as low as possible and offer yet more options for customers looking to take a mortgage with us.
“All our mortgage products are available to our existing borrowers. Subject to any conditions attached to their existing mortgage, Northern Rock customers can switch to any one of our latest deals. We believe that all these features continue to offer a very attractive overall product proposition and are in keeping with our commitment to openness, transparency, and fair treatment of customers.”
David Hollingworth, mortgage specialist at London & Country, said: “Northern Rock is trying to produce a lower rate, but the fees are fairly high and these have a bigger impact the shorter the term. But it has withdrawn the 1.5 per cent fee on its two-year fixed rate. Whether people want to take out a one-and-a-half year mortgage is debateable, though the rate is tempting. It all comes down to what the customer feels is right for them, as they can either go for a lower rate with a higher fee or higher rate without a fee.”
