Fixed Rate Property Loan Rates Reduced

Northern Rock has followed the market trend and reduced its fixed rate mortgages from 7 down to 6.43 percent.

The demand for fixed rate mortgages is strong right now as buyers look to get a set interest rate for a period of time, hoping to ride out the rises that have seen monthly mortgage costs increasing. Potential buyers should therefore look around to find the most suitable offer, not forgetting to include arrangement fees in their calculations of course, the Northern Rock mortgage for example having a fee of GBP1,495.

The mortgage market is still testing one, especially with buyers still needing to put down a deposit that is likely to be around 20 percent of the property value. Saving such a sum is difficult in itself so the fact that Northern Rock has cut the rate is certainly helpful as it reduces the monthly repayment.