Northern Rock ups mortgage rates

by Ed Bowsher on 18 November 2009  |  0 comments
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Northern Rock has had some very competitive mortgage deals in the last couple of months. Some of them are now being withdrawn.

Northern Rock has been running some very competitive mortgage deals over the last couple of months. Its best deals have been winning combinations of low rates and low fees.

However, it looks like Northern Rock may be running out of money to lend as it's raising the rates on some of its fixed rate mortgages. That's a real shame as I especially like The Rock's 2-year fixed rate deal at 3.79% which is a great mortgage for people with a 30% deposit. I also like the 5-year fix at 4.99% which again requires a 30% minimum deposit.

We don't yet know which rates will rise and by how much, but I fear that both of my favourite Northern Rock fixes will be for the chop. So if you're tempted by either offer, you need to get cracking right away as the application deadline is 8PM on Thursday evening.

The news is better when it comes to trackers as Northern Rock is leaving this range alone. At least for now So if you think that interest rates are going to stay low over the next few years, The Rock's 2-year tracker at 2.59% could be just the ticket. Once again, you'll need a 30% deposit, and the fee is on the low side at £595.

If you fancy getting this tracker, speak to a broker at lovemoney.com mortgages. 

At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call 0800 804 4045 or email mortgages@lovemoney.com for more help.

This article aims to give information, not advice. Always do your own research and/or seek out advice from an FSA-regulated broker (such as one of our brokers here at lovemoney.com), before acting on anything contained in this article. 

Finally, we tend to only give the initial rate of a deal in our articles, but any deal which lasts for a shorter period than your mortgage term will revert to the lender's standard variable rate when the deal ends. Before you take out a deal, you should always try to find out from your lender what its standard variable rate is and how it will be determined in the future. Make sure you take all this information into account when comparing different deals.