The first new product is a two-year flexible fixed, with a rate of 3.99 per cent up to 85 per cent LTV and 4.19 per cent up to 90 per cent LTV. Free legal fees are available for remortgages and there is a minimum loan amount of £100,000. There is an arrangement fee of 1.5 per cent of the amount borrowed, which can be added to the loan, and no extended early repayment charge – the early repayment charge of 3 per cent is only payable on full redemption within the fixed rate period.
The second new product is a buy-to-let two-year flexible fixed with a rate of 4.99 per cent up to 87 per cent LTV. Again there is a minimum loan amount of £100,000, a 1.5 per cent arrangement fee and an early repayment charge of 3 per cent within the fixed rate period only.
Northern Rock has also improved the rental income calculation for all its buy-to-let products. The 100 per cent rental calculation, calculated on an interest only basis is now based on a notional rate of Bank Of England Base Rate + 1per cent, resulting in a current rate of 5.50 per cent.
In addition, all flexible fixed and stepped flexible fixed rates have been increased by 0.1 per cent. The 2-15 year Flexible Fixed products now start at 4.69 per cent with a £695 arrangement fee or 5.09 per cent with no arrangement fee. The stepped range now starts at 3.69 per cent with a £695 arrangement fee or 4.09 per cent without.
All of the above products are available with a £1,000 help with costs option (repayable if the loan is redeemed within three years) and are fully flexible, allowing overpayments, underpayments, borrow-back and payment holidays.
All changes will take effect from Tuesday 15 November 2005.
