Product Information

The Everyday range aims to provide customers with choice and a simple and straightforward mortgage. It offers a selection of mortgage products designed to fit the needs of borrowers, whether a first time buyer, moving home or wanting to switch your mortgage from a current lender.

• Different rate periods mean that we suit the needs of different types of borrowers.
• Fee Saver Options are available.
• Fixed Rate Mortgages – for those who work to a set budget. They provide security of a set monthly payment over a specific period of time.
• Tracker Rate Mortgages – for those that want a mortgage with an interest rate directly linked to the Bank of England. Any change in this is reflected in the mortgage interest rate.
• Freedom to Fix Tracker – for those that want to hedge their bets or so to speak. It provides the best of both worlds – a Tracker with the flexibility of being able to switch to a Northern Rock Fixed rate at any point during their tie-in period. This means that borrowers can benefit from low interest rates but can switch to fix their monthly payment in the future if interest rates rise due to the direct link with Bank of England base rate.
• First Time Buyers - up to 90% LTV now available which is a fantastic proposition for first time buyer clients, looking to get on the housing market with a low deposit.
• Customers can make overpayments of up to 10% of their outstanding balance per calendar year without incurring an Early Repayment Charge. This can be done monthly or as a lump sum.
• Payment holidays are available once customers have had an Everyday Mortgage with us for nine months and providing that payments are up to date. These payment holidays can also be accumulated up to a maximum of 3 months and taken together, providing 27 consecutive payments have been made in full.
• Features of the Everyday mortgage mean that customers can change their mortgage to fit in with their life changes.

Incentives:

• Free basic valuation (instructed by Northern Rock) for residential remortgage borrowers.
• Free legal work (appointed by Northern Rock) for residential remortgage borrowers may be available.
• Cash back may be available on selected products at selected times.

Our range of Flexible mortgages, as the name suggests are flexible by nature. They are the fully flexible alternative to our Everyday mortgages. They change to fit customer needs; as their lives change so too can their mortgage.

• The flexible range comprises of Residential Trackers. Interest rates on Tracker mortgages are directly linked to the Bank of England Base Rate for a set period of time.
• Different rate periods are available to suit different types of borrowers.
• Overpayments are unlimited and can be made regularly or as a lump sum, penalty free, providing the loan is not redeemed in full.
• Borrow back is available whereby customers can borrow back any previous overpayments (minimum £500).
• Underpayments are also a useful feature. If a customer has chosen to overpay, they then also have the option to apply to make lower monthly payments.
• Customers can even pay stop paying altogether until the overpayment is used up.
• Payment holidays are available once customers have had an Everyday Mortgage with us for nine months and providing that payments are up to date. These payment holidays can also be accumulated up to a maximum of 3 months and taken together, providing 27 consecutive payments have been made in full.
• The above flexible features are subject to Northern Rock’s prior agreement.

Incentives:

• Free basic valuation (instructed by Northern Rock) for residential remortgage borrowers.
• Free legal work (appointed by Northern Rock) for residential remortgage borrowers.
• Cash back may be available on selected products at selected times.

At Northern Rock, we are focussed on providing flexibility across our mortgage range and providing products that meet the needs of your clients. As part of this focus we have launched a new proposition developed specifically to help ease your clients’ concerns around the potential for rising interest rates – we call it Freedom to Fix.

Our new range of Freedom to Fix Trackers will allow your clients to future-proof their mortgage against potential base rate increases by providing them with the option to switch to a Northern Rock Fixed Rate during their tie-in period without incurring an Early Repayment Charge.

In the current economic climate when interest rates are uncertain, this proposition can offer your clients the best of both worlds – a competitive tracker rate now with the ‘safety net’ offered by the ability to switch to a Fixed rate if rates start to rise.

Freedom to Fix customers will be entitled to move onto any applicable Fixed rate product from Northern Rock’s new business remortgage range available at the time of request. Clients with a Freedom to Fix Tracker will therefore have access to the same Fixed rates as any new customer. If there is a product fee associated with the chosen Fixed rate, this will be payable, however there will be no application or valuation fee charged.

If there has been a significant change in your clients circumstances (income, expenditure etc) since they applied for their Freedom to Fix Tracker an affordability assessment will be undertaken at the time of switch.

Freedom to Fix customers wishing to exercise their right to switch to a Fixed rate should contact Northern Rock directly on 0845 600 4570. Lines are open 8am to 8pm weekdays, 9am to 3pm Saturday and 10am to 3pm Sunday. Please note that this telephone number should be used by customers only.

Please note our Freedom to Fix range offers the same flexibility as our Everyday range (see above for details).

We now have a wide range of both Fixed and Tracker BTL mortgages.

• Flat-fee options are available on Fixed and Trackers.
• Percentage fee options are available on Fixed and Trackers.
• Fee Saver options are available.
• There is a maximum LTV of 70% required.
• Overpayments are a flexible feature of BTL. A set percentage of 10% of the loan balance can be paid each calendar year either by paying off a little extra each month or a lump sum.
• Payment holidays are available once customers have had an Everyday Mortgage with us for nine months and providing that payments are up to date. These payment holidays can also be accumulated up to a maximum of 3 months and taken together, providing 27 consecutive payments have been made in full.

Incentives:

• Cash back may be available on selected products at selected times.