The 90 per cent Mortgage is back
The 90% Mortgage is back.
Northern Rock is back with a 90% mortgage, so borrowers need to provide a 10% deposit on loans up to £450,000. In recent months, the minimum deposit had been 15%.
Northern Rock was bailed out by the British taxpayer to the tune of £3 billion in 2007.
The company claims it will screen all applicants extremely carefully to ensure it does not fall back into the trap of exceeding Loan to Value mortgages. Ron Sandler, of Northern Rock states customers will be “appropriately screened for risk and affordability.”
Their previous mortgage offer called ‘Together’ allowed a LTV of 125%.
The 90% Northern Rock mortgage deal will not necessarily be a cheap option, costing significantly more than 0.5% base rate. This new range includes a five-year fix at 6.59%, a three-year fix at 6.49% and a two-year fixed rate at 5.99%.