Northern Rock Cuts Mortgage Rates

By Northern Rock, PRNE
Tuesday, June 14, 2011

NEWCASTLE UPON TYNE, England, June 15, 2011 -

Northern Rock has reduced mortgage rates, making its range even
more competitive. As well as reducing selected rates across its
core mortgage range by up to 0.50%, it has improved its 2-Year
Fixed rate deal available exclusively through Northern Rock’s
intermediary partners. The product is now available at 2.99% for
those with a 30% deposit (70% LTV).

All of the remaining reduced deals are available to both
purchase and remortgage customers, the latter benefiting from
Northern Rock’s usual incentive of a free basic valuation and free
standard legal costs.

Northern Rock has reduced rates for customers with a 25%
deposit. A 2-Year Everyday Fixed rate deal with a £995 product fee
is available at 3.19% for those with a 25% deposit (75% LTV). The
same deal is available without a product fee, priced at 3.65%.

Alternatively, those with a 25% deposit (75% LTV) can choose a
3-Year Fixed rate mortgage with a £995 product fee at 3.93%, and a
5-Year deal with a £995 product fee is 4.59% up to 75% LTV. Those
who choose not to pay a product fee, can secure the same product at

Competitive Buy to Let rates start from 3.39% for a 2-Year
Everyday Fixed rate mortgage with a 3.5% product fee, up to 60%
LTV. Those preferring a flat fee of £1,995 can choose a 2-Year
Fixed rate up to 60% LTV, priced at 4.79%.

Everyday mortgages offer customers simple, straightforward
mortgage deals 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. Northern Rock continues to operate its
mortgage product range within the constraints of the competitive
measures agreed with the European Commission.

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 href="">savings accounts
and ISA
to customers in the UK and Ireland and href="">mortgages to UK
borrowers. New products are offered through both direct
channels - including a national branch network - and mortgage
intermediaries. The Northern Rock website also offers customers a

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

On Everyday mortgage products, the Early Repayment Charge (ERC),
currently 4% of the outstanding secured loan balance; will apply to
the outstanding secured loan balance at the time of redemption
until the end of the respective fixed rate period. Any overpayments
in excess of the 10% annual allowance will also be subject to the
Early Repayment Charge.

In June 2011, Northern Rock was awarded a national Big Tick
Award in Business in the Community’s Awards for Excellence, in the
category of Building Stronger Communities.

Media Contact:
Jule Wilson
Northern Rock House
Newcastle upon Tyne


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