At present Northern Rock mortgages offer a variety of different options for UK property buyers with varying needs. After some extreme difficulties caused by the credit crisis which started in 2007, Northern Rock has made something of a comeback with the significant assistance it has received from the UK Government. This has seen Northern Rock have gained some ground in the UK mortgage market.
Northern Rock Mortgage Currently Available
Currently Northern Rock mortgages provides the following options:
- Northern Rock flexible mortgages.
- Northern Rock fixed rate mortgages.
- Northern Rock variable rate mortgages.
- Northern Rock life time mortgages (for customers over 60 years of age).
- Northern Rock buy to let mortgages for landlords.
Northern Rock mortgages offer flexible repayment terms, including: overpayment options; underpayment and borrow back options; and annual payment holiday options.
Northern Rock Fixed Rate and Variable Rate Mortgages
Taking advantage of a fixed rate mortgage allows homeowners to avoid the uncertainly of variable rate increases. While the fixed rate is typically higher than the starting rate of a variable mortgage, this provides a stable payment that will not go up over time. As a homeowners earnings increase, the home payment will remain stable, making this a good long term loan option.
Variable rate mortgages carry a little more risk, but have a much lower beginning interest rate. Variable rate mortgages may be a good option for borrowers who can’t quite make payments at a higher fixed interest rate, but expect to earn more money within a year or two and can meet the payments as rates increase. Variable rate mortgages are also good options for borrowers who intend to remain in a home for a short period of time of about two years or less.
Northern Rock Life Time Mortgages
Life time mortgages are also known as “reverse” mortgages. These mortgages loan funds back to homeowners over age 60 to allow them to meet their expenses while remaining in their homes. Life time mortgages are typically paid back upon the sale of the property following a homeowner’s death or entry into a nursing or long term care facility. No payments are required during the term of the life time mortgage.
Northern Rock Buy to Let Mortgages
Buy to let mortgages can allow qualified borrowers to earn rental income through the purchase of a property. Flexible repayment options are available for buy to let mortgages as well.
Primary Benefits of Northern Rock Mortgages
- Flexible repayment options.
- No product fee option loans.
- Tailored personal insurance options.
- Paysafe mortgage payment protection options.
- Life Assurance mortgage payment protection options.
- Rapid remortgage service when switching to Northern Rock from another lender.
- Online mortgage guides.
Most Northern Rock mortgage types allow for flexible repayment options that may be exercised at different times during the life of the mortgage loan. These options include the ability to pay more than the required minimum monthly payment to reduce the amount of interest paid over the life of the loan and enable yo to pay off the loan more quickly.
Underpayment and borrow back options are also available for borrowers who have plan to overpay by £500 or more. This effectively gives borrowers the opportunity to pay more when finances allow, or to suspend payments and even borrow against these overpayments during times of financial difficulty.
Borrowers may also take a payment holiday and skip up to one payment per year. If the payment holiday isn’t used in a given year, borrowers can accumulate and use up to three payment holidays in a row. This does mean borrowers pay more interest over the life of the loan, but provides a helpful option in case of financial crisis, unexpected job loss, extended illness or maternity leave.
Benefits of Making an Application for a Northern Rock Mortgage
Northern Rock mortgages offer numerous benefits for potential applicants:
- Easy online application process.
- Mortgage calculator to help you understand the cost of a Northern Rock mortgage over time.
- Purchase, remortgage and buy to let mortgages options available.
- Online quotes that can be saved and analyzed at a later date.
- Up to date mortgage rate information.