Northern Rock cuts mortgage rates

Northern Rock is cutting its mortgage rates by up to 0.60% from today. until February 1 2011.

Its Everyday residential two-year fixed rates for purchase customers will now start from 2.88% up to 70% LTV, previously 3.09%.

While its Everyday two-year trackers for purchase start from 2.59% up to 70% LTV, previously 2.89%.

Everyday mortgages allow customers to make overpayments of up to 10% each year, as well as the option to apply for payment holidays.

Rates for those with smaller deposits have also been cut, with Everyday two-year fixed rates for purchase customers with a 85% LTV available from just 4.38% with a £995 product fee, previously 4.89%, and Everyday two-year fixed rates for purchase customers with a 20% deposit 80% LTV available from 3.98%, previously 4.39%.