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Northern Rock launches broker-only tracker

Northern Rock is launching a two-year tracker at 2.93% and 70% LTV exclusively for brokers tomorrow.

The deal is the winner of the lender’s ‘Design Your Own Mortgage Product’ competition which asked brokers to create products and vote on others’ ideas.

The flexible tracker will operate at 2.43% above base rates with a product fee of £995, and was submitted by broker Mark Watson.

Watson says: “The flexible draw down facility will help fulfil the client’s needs, with a low fee. It means that clients with equity in their property can make full use of the facility to overpay or apply to borrow back their funds with no extra fees or penalties.”

Anth Mooney, marketing director of Northern Rock, adds: “We were overwhelmed by the response we had to this competition and would like to thank all of our intermediary partners for taking part.

“Intermediaries are a core part of Northern Rock’s business, and this is one way for us to recognise that support. In designing and voting for this product, our partners have told us what their clients are looking for in a mortgage product and with their help, we have been able to bring  it to market.

“We’re delighted to be able to offer this product as an intermediary only exclusive.”

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  • Bobby heenan 12th August 2010 at 3:18 pm

    What is also curious is that theres a 2 year tracker (70% LTV) on trigold with Northern rock at 2.59% with £995 fees!!

  • Phil 12th August 2010 at 2:42 pm

    This competition was flawed from the beginning, since you had to follow Northern Rocks design tools in order to create the product. To get a lower rate you have a bigger proc fee etc.

    There was nothing new or inventive about this competition and it was open to manipulation,since if someone came from a large network/company all his friends in that company/network could vote for them

    The best way this competiion could have worked would have been to ask brokers to design a product with a new idea attached to it, and then have your product team pick the best 3 and put them forward to be voted on. The product rates could have then been assessed at that time to check they are competitive to launch

    Why would people who are whole of market recommend a 2 year rate tracker at 2.93% with £995 fee when there are lots more better deals than it ie HSBC 2.19% 2 year tracker up to 70% with £599 fee?

    And before you say HSBC is direct only there are many more broker products below this quoted rate on a 2 year tracker basis.

    If your going to have a competition for a new product put something new into the design of it