Northern Rock has revealed that many UK mortgage borrowers coming to the end of their fixed rate deal could be better off if they took a mortgage with Northern Rock*, even if they only have 20% equity.
Across the market, almost 200,000 of these consumers are due to come to the end of their fixed rate deal in the next six months, and more than 80% of these will end their deal on an interest rate of 4.00% or above.
Fixed rate pricing across the market is at an all time low, and Northern Rock offers a range of two-year fixed rate mortgage deals below 4.00%, which could save some borrowers more than £100 per month compared to their existing deal.
For example, the average fixed interest rate ending in January 2012 for borrowers with 30% equity in their property is 4.68%. A borrower switching from this to Northern Rock’s two-year fixed rate at 2.67% would see their monthly payment fall significantly over the fixed rate period.
For borrowers with 20% equity in their property, the average fixed rate ending in January 2012 is 5.09%. A borrower switching from this to Northern Rock’s two-year fixed rate at 3.47% would see their monthly payment fall substantially over the two-year deal.
Lloyd Cochrane, Head of Lending Products at Northern Rock said: “Many people do prefer the security of a fixed rate mortgage and this research highlights the opportunity that exists for consumers in the market at present, with fixed rate deals currently available at such low rates.
“Northern Rock continues to play its part in that market by offering some very attractive rates. We believe we can help more than 80% of these consumers to reduce their monthly payments, so, when looking at where to remortgage when their current fixed rate deal ends, it is important that borrowers shop around to get the best product to suit their circumstances.”
More information on Northern Rock’s mortgages can be found on its award-winning mortgages website at www.northernrock.co.uk/mortgages/. The site also includes a range of interactive tools, such as a jargon buster, budget planner and mortgage calculator – all helping to take the complexity out of selecting the right mortgage.