In a message to brokers the bank states: “We had hoped to offer this reduced fee to you and your clients last week but due to unforeseen circumstances this was delayed. However, these issues have now been resolved and our mortgage application fee has been reduced from £250 to £99.
“This means that your clients buying a new home or investing in a buy to let property will pay less upfront. We still offer free valuation and legal fees for our residential remortgage customers and they remain unaffected by this change.”
The mortgages benefiting from the reduction includes fixed rate and tracker products at 60% LTVs on purchases and buy-to-let.
Anth Mooney, marketing director at Northern Rock, had said: “This reduction to our mortgage application fee is great news for customers who are looking to keep their purchase costs low.
“There are lots of elements involved in buying a new home and this is one way Northern Rock is helping to keep things as straightforward and affordable as possible for our customers.”