Member Article

Rock to cut rates

Newcastle-based Northern Rock has become the latest lender to announce it is cutting its mortgage rates as competition slowly returns to the market.

The nationalised bank said it is slashing up to 0.4% off the cost of its fixed rate mortgages, while it is shaving its tracker rates by up to 0.14%.

It is the second time in two weeks that the group has reduced the cost of its mortgage products.

The changes come the day after Nationwide announced it was cutting rates on 34 of its mortgage deals for homebuyers by up to 0.84%.

The reductions made by Northern Rock leave its two-year fixed rate mortgage for someone with a 30% deposit who pays a £595 fee at 3.69%, while tracker deals for the same borrower start from 2.69%, or 2.19% above base rate.

Lloyd Cochrane, head of mortgage products, said: “These rate reductions provide further evidence of our commitment to the mortgage market.

“These products offer some of the lowest rates available for homebuyers and re-mortgage customers alike.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .