Northern Rock promises to bring back £99 mortgage fee

Northern Rock last week pledged that its £99 mortgage application fee offer would be back despite having to pull it last Monday.

The lender originally announced on August Friday 20 that it was re-ducing its application fee for resi-dential purchase and buy-to-let mortgages from £250 to £99.

But it says that due to an internal system error over the weekend the reduction had to be withdrawn.

However, on Monday August 23 some of its external suppliers’ sys-tems continued to display the appli-cation fee at £99.

As a result Northern Rock says it will honour applications received on that day, after which date it will return to the £250 fee.

Sources at Northern Rock say the £99 fee should be back in days, rather than weeks.

A spokesman for Northern Rock says: “We are working to implement the fee reduction as quickly as possible and regret any inconve-nience to customers.”

But some brokers were outraged by the glitch.

Ray Boulger, senior technical manager at John Charcol, says: “Someone’s head should roll after this incompetent change of fees. I don’t know what the technical prob-lem can be but it’s poor stuff.”