Northern Rock increases fixed rate mortgage cost
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Nationalised bank Northern Rock today announced that it was increasing the cost of a number of its fixed rate mortgage deals.
The group is raising rates on its two, three and five-year fixed rate loans by between 0.2 per cent and 0.3 per cent.
It said the move was to ensure it did not breach competition constraints placed on it to prevent it from taking advantage of its Government backing.
Under these rules, Northern Rock is not allowed to write more than 2.5 per cent of all new mortgages in a year.
It must also avoid appearing at the top of a best-buy table for a "prolonged period of time".
Before the changes the group had been offering a two-year fixed rate mortgage of 4.99 per cent for someone with a 25 per cent deposit who paid a £995 arrangement fee, which was the second best deal available. This loan has now been increased to 5.19 per cent.
The group was one of a number of lenders that was quick to cut its standard variable rate (SVR) following this month's cut in the Bank of England base rate.
It passed on the full 1.5 per cent to give a new rate of 5.84 per cent, although the deal is only available to existing customers coming to the end of a fixed term deal.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments