NR 18-month mortgage gets mixed reception

Northern Rock’s 18-month flexible fixed rate mortgage has received mixed reactions in the industry.

Rates start at 4.49% and borrowers can choose between paying a lower rate with a product fee of 695 or a higher rate of 4.79% with no product fee. The range also offers LTVs of 75%, 85%, 90% and 95%.

Andy Wilgoss, managing director at Square Mile Mortgage Finance, says: “This mortgage looks competitive. It is also well timed if speculation that the next interest rate movement will be upward proves correct.”

But Wayne Unsworth, mortgage adviser at Hallmark IFA, says: “This seems like a good rate and is a good idea in principle but the fees are still the same as longer fixes, which means the expense will add up for clients. It would be a good idea to lower the fees as well.”