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


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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.