Northern Rock's Everyday mortgages have 'better rate'

Date:Tuesday 26th January 2010
Author: Susanna Kavka

Northern Rock's new range of Everyday mortgages can offer borrowers a better deal than their standard product, according to Mortgage Force.

The new products are being offered with fewer flexible parts, allowing holders to overpay by ten per cent a year and the option to apply for a payment holiday.

However, the idea is that because the deal is stripped back it will not cost as much in administration fees due to less paperwork and fewer call centres.

Picking out the best deal, the Everyday products are on average 0.1 or 0.2 per cent lower than the old Flexible range.

Taking out the 80 per cent loan-to-value offers the best value for money, as the rates have been reduced from 5.59 per cent to 5.19 per cent.

But, consumers have been warned to be wary as the prices on the Flexible mortgages have increased slightly, making the new deals look better.

Mortgage Force has also picked out other good products, with a tracker from the Post Office being singled out as ideal for people with 20 per cent deposits.