Northern Rock significantly improves to its mortgages
Posted on 5 October 2009 by
Following on quickly from the significant improvement (reported in the previous blog post) to Woolwich’s lifetime tracker rate Northern Rock are also getting in on the act with several good improvements to its product range from tomorrow.
Northern Rock is increasing the maximum LTV to qualify for its best rate from 65% to 70%, reducing its rates and also cutting the £995 arrangement fee for all residential purchases (but not remortgages) to £595. The cheapest 2 year (to 31/10/11) fix for purchases comes down by 0.34% from 4.09% to 3.75%. However, the rate to 75% is only being reduced by 0.16% to 4.55%. Thus the gap between the 70% and 75% rates is now 0.64%, which seems excessive for such a small LTV difference.
It is also excellent news to see a 0.5% reduction in its 2 year Buy to Let (BTL) fixed rates. The rate to 60% LTV is down to 5.49% and the rate to 70% to 6.09%, both with an unchanged 2.5% fee. With so little competition in the BTL market it is particularly encouraging for that market to see such substantial reductions from Northern Rock, coupled with the improvements across the board to BTL rates announced by The Mortgage Works (a Nationwide subsidiary) from the end of last week.
Categories: Buy to let, Mortgages, Interest rates
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Tom says:
Are there any 10-15 year fixed BTL deals out there?
Ray says:
Regrettably no.
The longest term BTL fixed rate currently available is 5 years, where the best deal is 5.99% up to 70% LTV, with a relatively low fee for BTL of £999 but a maximum loan of only £250,000 and a minimum age of 30.
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