Northern Rock Cuts Everyday Mortgage Rates

NEWCASTLE UPON TYNE, October 11, 2010 - Northern Rock has improved its Everyday mortgage range,
offering lower rates which will make it more affordable for those looking to
buy a new property or remortgage their home. The new Everyday fixed rates
start from just 3.09%.

Everyday mortgages offer customers simple, straightforward
mortgage deals (
www.northernrock.co.uk/mortgages/Find/?utm_source=MortAB2) with
competitive rates and the ability to make overpayments of up to 10% each
year, as well as the option to apply for payment holidays.

The news comes just weeks after it reduced its application fee
for purchase customers to just GBP99.

Until Saturday 23 October 2010, all successful mortgage
applicants on any Northern Rock purchase product who complete by 31st January
2011 will be entered into a prize draw with the chance of winning a home
'makeover'. This prize will include a personal consultation with an interior
designer to help them plan the change, and gift vouchers from retailer John
Lewis.

Lloyd Cochrane, Head of Mortgage Products at Northern Rock
said: "Buying a new house can be very exciting, but making your new house
your home can also be expensive. Northern Rock understands this and so, as
well as making rate cuts across our Everyday range of mortgages, we are
offering one lucky mortgage customer the chance to win a fantastic new home
makeover which we hope will help things along a little."

Northern Rock continues to offer a choice of Fee Saver options
across its Everyday and Flexible product ranges for customers who are looking
to keep their costs as low as possible. And there is also a competitive range
of Buy-to-Let mortgages (
www.northernrock.co.uk/Mortgages/Learn/Buy-To-Let) available.

Northern Rock continues to operate its mortgage product range
within the constraints of the competitive measures agreed with the European
Commission. Full details of the entire mortgage product range offered by
Northern Rock are included for information.

Notes to editors

Loan To Value (LTV) - LTV means the loan amount requested, expressed as a
percentage of the property value (or the purchase price if lower).

Northern Rock's residential mortgages (
www.northernrock.co.uk/mortgages/) for new customers are available up
to a maximum 85% LTV limit. Our maximum LTV on Buy To Let mortgages is 70%.
The maximum LTV available for new build flats, on any product, is 70%.

This information is direct at professionals only and should not be relied
upon by any other persons. It is not a financial promotion and should not be
displayed as such.

About Northern Rock:

Northern Rock plc is a new bank, authorised by the FSA as a
deposit taker and mortgage lender from 1 January 2010. It offers savings
accounts to customers in the UK and Ireland and mortgage products to UK
borrowers. New products are offered through both direct channels - including
a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory
measures agreed with the EC as part of the State Aid approval announced in
October 2009.

Northern Rock plc - Registered in England and Wales (Company No.
6952311).

Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne,
NE3 4PL.

Authorised and regulated by the Financial Services Authority.

    Media Contact:

    Jule Wilson
    Communications Manager
    Northern Rock House
    Gosforth
    Newcastle upon Tyne
    NE3 4PL
    +44(0)191-279-4676

    www.northernrock.co.uk

Media Contact: Jule Wilson, Communications Manager, Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL, +44(0)191-279-4676.