Northern Rock launches 90% LTV fixed rate deals from 5.99%

Northern Rock is launching a new range of Everyday mortgages available up to 90% loan-to-value.

As part of a support package for first-time buyers, the state-backed lender is introducing a two-year fixed rate deal at 5.99%, a three-year fixed rate product at 6.49% and a five-year fixed rate at 6.59%, all of which have no payable product fees.

Andy Tate, customer and commercial director at Northern Rock, says: “Our new products, which will be offered within our prudent risk appetite and only to customers with good affordability, should appeal to those who have lower deposits and first-time buyers.

“First-time buyers are important to the housing market. Having listened to those customers, we have developed a service that not only helps them to arrange the right type of mortgage that they can afford, but also supports them through the various steps in the process.”

The lender has also cut its interest rates across the rest of its mortgage range, reducing Everyday fixed rates at 75% and 70% LTV by up to 0.19%, Everyday trackers at 75% and 70% LTV by up to 0.3%, two-year fixed rate buy-to-let deals by 0.6% and longer-term BTL deals by 0.2%.

This is the first-time Northern Rock has offered LTVs higher than 85% since its high-profile collapse and government bail-out three years ago.

Nigel Lewis, property analyst at Findaproperty.com, says: “Northern Rock are offering these mortgages only because they must believe that the house price drops seen over the past two years are now over and that a more stable housing market will now follow – they wouldn’t lend at such high LTVs if they thought otherwise.

“This is good news for first-time buyers put off by the prospect of negative equity because at worst house prices are due to be flat for the next year or so with potential rises in areas of high demand.”

For details of homes suitable for first time buyers click here. For mortgages contact any of your local Besley Hill branches - click here for your local branch.

Thanks to Mortgage Strategy for this news 02.03.11