Northern Rock has launched a new mortgage range which aims to provide a ‘straightforward’ alternative to the lender’s flexible products.
The Everyday mortgages, which include two-year fixed-rate deals starting at 3.69 per cent and trackers from 2.75 per cent, enable customers to make overpayments of up to ten per cent each year.
It also provides borrowers with the option to request payment holidays.
According to Lloyd Cochrane, head of mortgages at Northern Rock, the range was launched in response to customers who said they liked having flexible features in their mortgage, but didn’t often take advantage of them.
He added: “These new Everyday products will meet the needs of many people by offering competitive rates with the right level of flexibility for them.”
Katie Tucker, technical manager at whole-of-market broker, Mortgage Force, said the Everyday range deals looked better, in comparison, than Northern Rock’s Flexible deals.
She added: “The intention is that by offering a fewer bells and whistles, Northern Rock can price the actual rate better.”
Ms Tucker’s analysis showed that compared with the Flexible range of residential mortgages, the new Everyday range offered fixed rates that were 0.1 per cent or 0.2 per cent lower.
The best deal, she said, was the 80 per cent loan-to-value mortgage which has been reduced from 5.59 per cent to 5.19 per cent.
Compare best mortgage rates and deals
- product news
Twitter: My Finances
Join the conversation at #news_myfinances