Northern Rock and Woolwich offer fixed mortgage at 3.99%

Northern Rock who earlier this year become nationalized by the UK government, have introduced new fixed rate mortgage deals and raised the interest rate on their tracker mortgage products.

Northern Rock have increased the rates on all new Trackers by 0.5 percent, but have introduced new lower fixed rate deals, a two-year fixed deal with a 75 percent Loan to Value (LTV) has been cut by 0.7 percent from 5.69 percent to 4.99 percent, this mortgage product also holds a arrangement fee of £995.

Northern Rock are also offering a one-year fixed product with a mortgage rate of 3.99 percent, however you do need to put down 35 percent of the property value to qualify for this deal.

With the Northern Rock mortgage product once your year contract is up, you are not tied to the deal and will not be penalized for changing lender or product, unlike the 1-year fixed deal called “fix and track” at 3.99 percent that the Woolwich, Barclays mortgage arm is offering, with this deal you are contracted to the deal for 3 years, 1 year on the fixed mortgage rate and 2 years on the banks tracker rate which tracks the Bank of England base rate. With the Woolwich deal, if you wanted to come out of it before your mortgage contract is up you would have to pay a redemption penalty.

Source: timesonline