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.