The products are available with no extended early repayment charges. The new rates start at 5.79 per cent up to 85 per cent LTV and 5.99 per cent up to 95 per cent LTV. Five and seven-year fixed rates in the ‘Together’ range, which allows borrowing of up to 125 per cent LTV (max 95 per cent secured), have also been reduced and now start at a rate of 6.29 per cent.
The deals are fully flexible allowing underpayments, overpayments, redraws and payment holidays. In addition, all of the above products are available with the option of paying no arrangement fee and a benefit of £1,000 help with costs. Borrowers also have the option of adding an unsecured cash reserve of up to £10,000 to take total borrowing up to 100 per cent.
London-based sole broker Roy New predicted that there would be an increase in the number of clients seeking to fix their mortgage following the increase in interest rates. He said: “Mortgage enquiries have gone down as the market continues to slow so people are asking for more fixed rates.
“Northern Rock’s rates are good but the trouble is its redemption penalties as well as its service, is rubbish. I put a case to them online a month back but it didn’t get back to me until five days later. I shouldn’t think I’ll be using them in the near future.”
