View more on these topics

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.”

Recommended

KEVIN PATERSON, SALES AND MARKETING DIRECTOR, ASSURANT INTERMEDIARY

Loosen the noose on interest-only loans

Lax lending over the past 10 years has been singled out for its role in creating the mortgage time bomb but this does not mean we should do away with interest-only altogether. It just needs tightening up

jonathan_cornell_143x175.gif

Marketwatch

Swaps fell pretty sharply for the second week in a row to a new all-time low. Hopefully these drops will be passed on. When you look at some of the swap rates and compare them with lenders’ fixed rate offerings there seems to be a pretty big difference. But of course lenders have other costs […]

1

Lenders’ margins on mortgages hit a two-year high

Moneyfacts.co.uk says the margin between mortgage rates and the cost of funding to lenders via swap rate markets is at an all-time high.Two years ago the margin on a two-year fixed deal was 1.28%, compared with 3.29% today. Michelle Slade, spokeswoman for Moneyfacts, says borrowers will be angry at this news, especially at the government-backed […]

cap_comp.jpg

LAST WEEK’S WINNER

“No, I said we’d need a rudder not a Ruddock.” VALERIE GANNE

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • andy 24th August 2010 at 10:45 am

    amateurs!

  • William Reid 24th August 2010 at 10:33 am

    Laughable if it wasn’t so unprofessional! Just when maybe some brokers and clients were starting to have a bit of belief in the new operation.