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Northern Rock refreshes range of mortgages

Wednesday 10th October 2007

The range of mortgages on offer from financial services provider Northern Rock has been "simplified", the organisation reveals.

About two-thirds of its previous product line-up were removed from Thursday, October 4th, according to the Press Association (PA).

But the news service claims that the overall "risk profile" of the institution remains the same, with loan-to-value (LTV) ratios of up to 125 per cent still on offer.

This means individuals could obtain funds to purchase a property with up to a quarter of the homes value left over to spend on legal fees and furnishings.

Meanwhile, a single interest rate has been introduced for each product to cover all LTV ratios of 95 per cent and below, reports the PA.

Northern Rock spokesperson Ron Stout told the newswire: "Our product range has been refreshed to reflect current conditions.

"We will continue to lend in a prudent and responsible way and maintain the excellent quality of our mortgage book."

He added that the financial services provider maintains a level of defaults which is below the industry average.

Northern Rock states that the changes include the withdrawal of all 18-month fixed-rate mortgages.

And borrowing of 125 per cent LTV is achieved through the combination of a 95 per cent secured loan and an unsecured personal loan for the remaining funds.

The unsecured portion is limited to a maximum loan of £30,000 per person, the organisation adds.

All products now have the option of deferring the payment of fees and instead incurring an interest-generating additional amount on the total balance to be repaid.

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