Northern Rock increase variable rates

Northern Rock is increasing its variable mortgage rates following the increase in the Bank of England Base Rate on 3 August 2006.

For Northern Rock borrowers whose loans qualify for a loyalty discount after seven years, the new Loyalty Rate will be 6.59% per annum with effect from September 1 2006 following a 0.25% discount off its standard variable base mortgage rate.

Northern Rocks SVR will increase by 0.25% to 6.84% with effect from September 1 2006 both for new applicants and existing borrowers.

Rates paid to Northern Rock savers are currently under review. Any savings rate changes will also take effect from September 1 2006.