View more on these topics

Fears rise as Rock releases competitive fix

Northern Rock has launched a new mortgage range including a highly competitive two-year flexible fixed rate from 5.89 per cent.

The move comes despite concern from some in the industry that the nationalised bank is competing unfairly for business.

Last month, the Building Societies Association wrote to the European Commission, expressing its concerns.

The association’s head of policy Neil Johnson says: “We do not mind fair comp- etition but we are concerned about Northern Rock’s pos- ition and how it competes.”

The two-year fixed rate of 5.89 per cent has a maximum loan to value of 75 per cent and has a fee of £1,495.

London & Country tech-nical manager Richard Morea says: “It is very competitive. There are a lot around at a similar level but this seems less restrictive. However, it s only on purchases so it will have a limited market right now. The remortgage opt- ion is not as competitive but all these products will be in the mix and Northern Rock will pick up business with this one.”

The Mortgage Practitioner principle Danny Lovey says: “This product is hitting the right buttons but where are they getting the money from to lend?

“There are those with a Together mortgage now stuck with Northern Rock on a 7.49 per cent standard variable rate with no equity and nowhere to go. They are the ones subsidising this competitive deal.”


Kneeshaw to head international force

Royal London has named David Kneeshaw as chief executive of the combined Scottish Life International and Scottish Provident International businesses. Kneeshaw is currently chief executive of Scottish Life International.

The bogus season

Perhaps the biggest nail in the coffin of life companies has been the tarnishing of the with-profits concept.

Winning ways

The RDR debate rages on but some issues seem to be stuck in muddy waters.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm