Northern Rock – encouraging new savers whilst discouraging new borrowers - Credit cards - News - Moneyfacts

News

Northern Rock – encouraging new savers whilst discouraging new borrowers

Northern Rock – encouraging new savers whilst discouraging new borrowers

Category: Credit cards

Updated: 31/10/2008
First Published: 06/12/2007

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

As the Northern Rock situation continues to dominate much of the media and with changes across a number of their products this week, we thought a brief update might be of some help.

  • Savings: Rate increased from 6.30% to 6.49%.
  • Savings: Rate increased from 6.31% to 6.49%. Bonus for 12 months also increased from 1.06% to 1.24%.
  • Credit cards: Co-operative Bank backed Northern Rock Base Rate Visa will be withdrawn from sale to new customers.
  • Loans: Northern Rock funded Eskimo Loans was withdrawn
  • Loans: Northern Rock loan rates increased on 23.11 by 2% to 10.9% APR
  • Mortgages: All 5-year 'Together' fixed rate mortgages withdrawn.
  • Mortgages: 2 year 'Together' fixed rate mortgages withdrawn & replaced with rates increased by 0.30%.

The increases to Northern Rock's leading savings products today, including taking the top spot in the over 50s best buy charts with its Silver Saver Online, are a clear sign they are keen to win back some much needed savings balances. With so many competitive savings products available, it will be interesting to see if these latest rate rises are sufficient enough to lure savers back to Northern Rock.

On the other hand, the withdrawal from the credit card market, withdrawal of Eskimo loans and the increased rates on the Northern Rock loans would appear to indicate a reduced appetite for lending on an unsecured basis. While Northern Rock is not alone in the loans market, the withdrawal of its credit card to new borrowers, aside from the market wide increasing of fees, is the first sign of the credit crunch affecting this market.

Even Northern Rock's secured lending has seen a tightening of criteria and is currently bucking the market trend by increasing fixed rates.

Best Buys - Savings accounts

Best Buys - Credit Cards

Best Buys - Personal Loans

Best Buys - Mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Top credit cards for Christmas spending

‘Tis (just about) the season to be jolly, but before all that festive fun begins, chances are you’ve got a bit more shopping to do. But, if you’re turning to credit to fund things, you’ll want to use cards that offer 0% interest deals on purchases.

Spooky reality of high balance transfer fees

Credit card debt is scary at any time of year. While most might assume that opting for the longest deal on offer would save them the most, our data shows some of the longest deals can actually work out to be the most expensive.

Reward credit cards that become ‘pointless’

If you regularly use cards to pay at the till, you may have considered opening a reward credit card to earn points every time you spend. However, not all of these cards are as rewarding as they may seem…
 
Close