Northern Rock cuts two year fixed rate

The Northern Rock has today announced a cut in interest rate for its two year fixed rate mortgage deal to 5.54%. The scheme, which is only available via intermediaries, is available to those who wish to borrow up to 65% of the value of the property to be mortgaged, and has a product fee of £1,195 which can be added to the mortgage.

For those with small mortgages, Northern Rock offers a version of the scheme with no product fee and an increased interest rate of 6.19%. This means that for borrowers borrowing less than £100,000, it is cheaper to opt for the increased interest rate and have no fee, making this a very competitive option.

The new product is available to both house buyers and those wishing to switch their mortgage from their current lender, with remortgage applications benefiting from a free valuation and free remortgage legal service. Northern Rock has indicated that the funds for this product are limited, and the product could therefore be withdrawn at very short notice.

Related Articles

HomeBuy Direct offers housing hopeLenders make house price crash worseBanks Squeal Under Government PressureRate cuts have limited successTwo year fixed rates tumble