Northern Rock launches new product to help first-time buyers

Northern Rock has announced a new range of 90 per cent loan-to-value mortgages designed to help first-time buyers access some of the best mortgage rates on the market.

The new deals are available to people with low deposits but with good affordability, ranging from 5.99 per cent for a two-year fix to 6.59 per cent for a five-year deal.

Commenting on Northern Rock's latest mortgage rates, Paul Holmes, chief executive officer of Firstrung, said that they will help buyers who are determined to get onto the first rung of the ladder.

However, he noted that the criteria for the new mortgage rates is stricter now than it was four or five years ago.

"The first-time buyer will have to have an impeccable work record, and just as equally, an impeccable credit score. It is only one part of the jigsaw," he added.

He noted that HSBC, Yorkshire Bank and Yorkshire Building Society have been offering similar mortgages for the past year or so, which means the new Northern Rock product is not as drastic as it seems.
 

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2011-03-09 12:53:30 © Moneyextra.com