Northern Rock Reduces Mortgage Fees and Rates

Last week the UK-based lender Northern Rock announced that it has improved its terms on buy to let and residential mortgage offers.

As such, the interest rates were cut everyday residential mortgage deals, whereas charges were reduced on buy to let products.

At the moment, Northern Rock offers 5-year residential mortgages at 4.39% and 4.50% for borrowers with 30% and 25% deposits accordingly. The lender's 2- and 3-year mortgages are available at 3.15% and 4.10%. The deals also feature payment holiday and overpayment options.

Buy to let mortgage offers by Northern Rock have seen fees reduced by 0.5% to 2%. The interest rate on 2-year loan has also been decreased to 5.69% for borrowers with a 30% deposit.

Let us remind that Northern Rock always tried to position itself as the most flexible lender by allowing borrowers to apply for various options, such as unlimited underpayments, overpayments, and more. The bank currently operates under the competitive constraints set by the European Commission.