Northern Rock axes over two thirds of its mortgage range - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Northern Rock axes over two thirds of its mortgage range

Northern Rock axes over two thirds of its mortgage range

Category: Mortgages

Updated: 31/10/2008
First Published: 15/10/2007

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 It is now over 6 months old so the content may be out of date.

The extensive Northern Rock residential and buy-to-let mortgage range has seen its number of products cut by over two thirds, in its first product change since seeking emergency funding from the Bank of England.

The change simplifies the range in two ways; first the volume of product choices has been drastically reduced, and secondly the products have been simplified with the complete withdrawal of its cash rebate scheme.

The general trend is the removal of the lower loan-to-value ("LTV") products and exclusive intermediary and direct deals, but still retains its full range of percentage fee products (ranging up to 3.5%), and its fixed rate Together deals at 125% LTV.

With minimal change to pricing and the retention of the higher LTV products, this is certainly not a change that indicates that Northern Rock is changing its risk profile. The move towards more of a one size fits all product structure, by simplifying and streamlining products, brings the Northern Rock range more in line with the rest of the market and is more of a sign that it is looking to reduce operational overheads rather than anything more sinister.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.

10-year fixed mortgage market flourishes

Given upcoming negotiations on the UK’s relationship with the EU, we are expected to have some uncertain times ahead. As a result, many borrowers will be seeking long-term mortgage repayment security, and happily, the 10-year market is flourishing.