Northern Rock has introduced two products and re-priced its flexible fixed and stepped flexible fixed products. The first product is a two-year flexible fixed with a rate of 3.99% up to 85% LTV and 4.19% up to 90% LTV. Free legal fees are available for remortgages and there is a minimum loan amount of 100,000. There is an arrangement fee of 1.5% of the amount borrowed which can be added to the loan and no extended Early Repayment Charge. The ERC of 3% is only payable on full redemption within the fixed rate period.
The second product is a buy-to-let two-year flexible fixed with a rate of 4.99% up to 87% LTV. Again there is a minimum loan amount of 100,000, a 1.5% arrangement fee and an ERC of 3% within the fixed rate period only.
Northern Rock has also improved the rental income calculation for all its buy-to-let products. The 100% rental calculation calculated on an interest only basis is now based on a notional rate of Bank base rate + 1%, resulting in a current rate of 5.50%
All flexible fixed and stepped flexible fixed rates have been increased by 0.1%. The two to 15-year flexible fixed products now start at 4.69% with a 695 arrangement fee or 5.09% with no arrangement fee. The stepped range now starts at 3.69% with a 695 arrangement fee or 4.09% without.
All of the above products are available with a 1,000 help with costs option, repayable if the loan is redeemed within three years, and are fully flexible allowing overpayments, underpayments, borrow-back and payment holidays.
All changes will take effect from today.