View more on these topics

Northern Rock to offer 90% LTV mortgages

State-backed lender Northern Rock has launched a range of 90 per cent loan-to-value mortgages.

The range, which is aimed at first-time buyers, starts at 5.99 per cent for a two-year fixed rate mortgage and there are no product fees. The products are available both direct and through selected intermediary partners.

As part of the new range, the lender is also offering a three-year fixed rate at 6.49 per cent and a five-year fixed rate at 6.59 per cent.

The move marks the lender’s first return to riskier lending since receiving a bailout from the Government three years ago. Before the bailout, Northern Rock was known for its aggressive lending strategy which saw it offer borrowers a 125 per cent LTV product, called the Together mortgage.

There are still few lenders willing to lend at 90 per cent LTV and above. However, in recent times HSBC, Santander, NatWest and Skipton Building Society have all launched 90 per cent LTV mortgages.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. keep going guys. soon you will be back at 120%+ and we will all bail you out again.
    groundhog day!

  2. The few lenders that lend 90% don’t really.

    Had a first time buyer only last week failed the criteria of every one of those companies mentioned.

    Either due to low dredit score or the lender didn’t lend on flats or some other very silly reason.

    However, many were happy to lend at 85%

  3. Pleased to see this initiative by the state owned bank….I hope more will follow !

    http://www.maturedatingonline.org

  4. i thought they made a similar announcement a year or so ago when they were in the press saying they were going to do £8 billion of new borrowing………

Leave a comment