Northern Rock cuts mortgage rates for first-time buyers

# Everyday range 2 Year Fixed rates for borrowers with a 15% deposit start from 5.49% (previously 6.69%) with a product fee, or 5.99% (previously 7.19%) without a product fee.

# Everyday range 5 Year Fixed rates up to 85% LTV are now available from 6.49% (previously 7.09%) with a product fee, or 6.99% (previously 7.59%) without a fee.

The rate reductions complement the recent enhancements made to Northern Rock’s proposition for borrowers with a 20% deposit.

Everyday range 2 Year Fixed rates up to 80% LTV are currently available from an attractive 4.89% with a £595 fee for purchase customers, or a £995 fee for those remortgaging from their current deal.

Northern Rock offers Everyday 2 Year Tracker rates available from 2.60% (BOE + 2.10%) up to 70% LTV while Everyday 2 Year Fixed rates start from 3.45% for borrowers with a 30% deposit.

Lloyd Cochrane, Head of Mortgage Products at Northern Rock said: We want to help support the mortgage market and our latest rate reductions mean we are offering some great deals for customers who only have small deposits. This is hopefully good news for first-time buyers especially following the Budget announcement that stamp duty is to be suspended on properties under £250,000.

“This does not mean we will be relaxing our approach to responsible lending. Affordability for the customer remains a key priority, but we believe this range will offer encouragement to those looking to get on the property ladder.”