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Northern Rock to cut the number of its mortgage products by over two thirds

Northern Rock is set to have its number of products cut by over two thirds in its first product change since its funding crisis.

The lender has removed all of its one and a half year fixed rates from its Together and flexible fixed-rates range.

Its changes also see it withdraw its three year fixed-rate and variable rates from the Together range. The maximum secured part has also been reduced to 95 per cent loan to value.

Moneyfacts.co.uk mortgage expert Julia Harris says: “From tomorrow, the extensive Northern Rock residential and buy-to-let mortgage range will see its number of products cut by over two thirds, in its first product change since seeking emergency funding from the Bank of England.

“The change simplifies the range in two ways; first the volume of product choices has been drastically reduced, and secondly the products have been simplified with the complete withdrawal of its cash rebate scheme.

“The general trend is the removal of the lower LTV products and exclusive intermediary and direct deals, but still retains its full range of percentage fee products (ranging up to 3.5%), and its fixed rate Together deals at 125% LTV.

She adds: “With minimal change to pricing and the retention of the higher LTV products, this is certainly not a change which indicates that Northern Rock is changing its risk profile. The move towards more of a one size fits all product structure, by simplifying and streamlining products, brings the Northern Rock range more in line with the rest of the market and is more of a sign that it is looking to reduce operational overheads rather than anything more sinister.”

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