Northern Rock U-turn on £99 application fee

Northern Rock has postponed its decision to offer £99 mortgage application fees despite announcing it just last Friday.

It says that some of its external suppliers’ systems displayed the application fee at £99 during yesterday, August 23, so all applications submitted during this time will be accepted.

It adds: “For all customer applications submitted on Monday, August 23 for purchase and buy-to-let products, the application fee of £99 will be honoured. Northern Rock has now taken steps to ensure these systems have been updated overnight to reflect the delay in the fee change.”

But any applications submitted after Monday for purchase and buy-to-let applications received after close of business yesterday will be charged an application fee of £250 until the reduction to the application fee is implemented.
 
It says: “We are working to implement the fee reduction as quickly as possible and regret any inconvenience to customers.”

The purchase range affected is for both 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.”