Northern Rock is the second lender to offer a seven year fixed rate mortgage.
The mortgage has a seven-year fixed rate of 5.79 per cent for loans of up to 95 per cent of valuation and is available to all borrowers. It is also fully portable.
The 5.79 per cent fixed rate mortgage has redemption penalties of five per cent of the advance for the first three years, dropping to four per cent in year four, three per cent in year five, two per cent in year six and one per cent in year seven.
Northern Rock also include some additional features to the mortgage. Clients can take out a Northern Rock credit card with an interest rate of 7.9 per cent, and can also benefit from a loyalty discount. Customers who have been with the company for seven years or more can benefit from a discount of between 0.26 per cent to 0.41 per cent for the term of the mortgage loan.
According to Moneyfacts, on March 5, 2001, Birmingham Midshires 5.69 per cent fixed rate mortgage is the only other seven-year fixed rate mortgage. It is available for loans of up to 95 per cent of valuation and has redemption penalties of five per cent of the advance for the first year, four per cent in year two, three per cent in year three and two per cent thereafter.
Based on a £100,000 mortgage with a loan to value of 95 per cent, London & Country Mortgages says that monthly payments for the Northern Rock 5.79 per cent mortgage would be £631.53 a month. The Birmingham Midshires 5.69 per cent mortgage, on the other hand, would require payments of £625.49 a month.