Northern Rock Reveals Its Mortgage Could Be Beneficial To 8 Out Of 10 Borrowers
Released on: November 15, 2011, 2:39 am
Northern Rock has revealed that many UK mortgage borrowers
coming to the end of their fixed rate deal could be better off if they
took a mortgage with Northern Rock*, even if they only have 20% equity.
Across the market, almost 200,000 of these consumers are due to come to the end of
their fixed rate deal in the next six months, and more than 80% of these will end
their deal on an interest rate of 4.00% or above.
Fixed rate pricing across the market is at an all time low, and Northern Rock offers
a range of two-year fixed rate mortgage deals below 4.00%, which could save some
borrowers more than £100 per month compared to their existing deal.
For example, the average fixed interest rate ending in January 2012 for borrowers
with 30% equity in their property is 4.68%. A borrower switching from this to
Northern Rock's two-year fixed rate at 2.67% would see their monthly payment fall
significantly over the fixed rate period.
For borrowers with 20% equity in their property, the average fixed rate ending in
January 2012 is 5.09%. A borrower switching from this to Northern Rock's two-year
fixed rate at 3.47% would see their monthly payment fall substantially over the
Lloyd Cochrane, Head of Lending Products at Northern Rock said: "Many people do
prefer the security of a fixed rate mortgage and this research highlights the
opportunity that exists for consumers in the market at present, with fixed rate
deals currently available at such low rates.
"Northern Rock continues to play its part in that market by offering some very
attractive rates. We believe we can help more than 80% of these consumers to reduce
their monthly payments, so, when looking at where to remortgage when their current
fixed rate deal ends, it is important that borrowers shop around to get the best
product to suit their circumstances."
More information on Northern Rock's mortgages can be found on its award-winning mortgages website at www.northernrock.co.uk/mortgages/. The site also includes a range of interactive
tools, such as a jargon buster, budget planner and mortgage calculator - all helping to take
the complexity out of selecting the right mortgage.
Notes to Editors:
Key figures and assumptions from research:
- Research conducted by Northern Rock indicates 197,672 customers with 20% equity in
their property will come to the end of their current fixed rate deal between
November 2011 and April 2012.
- 163,970 will be coming to the end of deal with an interest rate of 4.00% and above.
- This equates to 82.9% of those customers i.e. 8 in 10.
- *Source: CACI's Mortgage Market Database, correct at 10 October 2011.
- Northern Rock offers a number of fixed rate remortgage deals below 4.00%.
- Product fees may apply on the new product selected.
- Customers are advised to check any applicable exit fees with their existing lender.
About Northern Rock
Northern Rock plc. is a bank, authorised by the FSA as a deposit taker and mortgage
lender from 1 January 2010. It offers savings accounts, including an ISA, to customers in the UK and Ireland and
mortgage products to UK borrowers. New products are offered through both direct
channels - including a national branch network - and mortgage intermediaries.
Northern Rock continues to operate within the compensatory measures agreed with the
EC as part of the State Aid approval announced in October 2009.
In June 2011, Northern Rock was awarded a national Big Tick Award in Business in the
Community's Awards for Excellence, in the category of Building Stronger
Northern Rock House
Newcastle upon Tyne
0191 279 4676
Back to previous page
Submit your press release