Northern Rock launches new 90% LTV mortgages to help First Time Buyers

Northern Rock has introduced a new range of Everyday mortgages with competitive interest rates available up to a maximum of 90% LTV as part of its new support package for First Time Buyers,

Designed to appeal to those who have lower deposits but with good affordability, including First Time Buyers, a 2-Year Fixed Rate deal is available at 5.99%, a 3-Year Fixed Rate is 6.49% and a 5-Year Fixed Rate is 6.59%. No product fees are payable on any of the products, all of which are being offered directly through Northern Rock branches and UK call centre, as well as being available through some of the bank’s intermediary partners.

In addition to these new products, Northern Rock has also cut interest rates across the rest of its mortgage range, with Everyday Fixed rates for customers with deposits of 25% and 30% reduced by up to 0.19%, Everyday Trackers for those with deposits of 25% and 30% have been reduced by up to 0.30%, 2-Year Fixed rate Buy-to-Let (BTL) deals cut by 0.60%, and longer term BTL deals by 0.20%.

With First Time Buyers in mind, the new 90% LTV mortgages will be complemented by a new service proposition, to help customers take their first steps onto the property ladder.

Research carried out by the bank revealed that while First Time Buyers are excited at the prospect of owning their own home, they felt the process could be daunting and confusing, with little support available in the market to meet their specific needs.

Northern Rock has therefore designed a full delivery service for First Time Buyers, developed specifically to ease these concerns and guide customers through their first experience of buying a home.

Andy Tate, Northern Rock’s Customer and Commercial Director, said: "Our new products, which will be offered within our prudent risk appetite and only to customers with good affordability, should appeal to those who have lower deposits and First Time Buyers.

“First Time Buyers are important to the housing market. Having listened to those customers, we have developed a service that not only helps them to arrange the right type of mortgage that they can afford, but also supports them through the various steps in the process.”

Northern Rock will help steer customers through the house-buying process using ten simple steps, each of which covers a different area of the house purchase journey, from setting an affordable budget at the outset, right through to exchange and completion. Experienced advisers will also be on hand both on the phone and in branch to answer any queries.

A new animated video guide for First Time Buyers has already been added to Northern Rock’s award-winning mortgage website to help customers with their initial research. The website also contains a whole host of other useful tools, such as a budget planner, and a mortgage calculator.

Customers can arrange to do everything under one roof, from organising a survey to choosing a solicitor from Northern Rock’s approved panel, and even selecting insurance most appropriate to their needs.

ENDS

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts to customers in the UK and Ireland and mortgage products to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

Media Contact:
Jule Wilson
Northern Rock House
Gosforth
Newcastle upon Tyne
NE3 4PL
0191 279 4676
www.northernrock.co.uk

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Jule Wilson

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Northern Rock

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