Northern Rock cuts mortgage interest rates

A number of rate reductions have been made by Northern Rock to its Everyday range of mortgages .

The cuts affect a number of two and three-year fixed rate deals and will help those with deposits ranging from ten to 30 per cent.

Northern Rock's two-year deal at a 90 per cent loan-to-value (LTV) ratio now comes at a rate of 5.88 per cent, with no product fee to pay.

Those with a bigger deposit can now benefit from a 3.39 per cent rate on a 70 per cent LTV mortgage, with a ?995 product fee, also on a two-year deal, while a remortgage on the same terms is now at 3.48 per cent.

Finally, Northern Rock has reduced its three-year 70 per cent LTV mortgage to 3.94 per cent, with a ?995 fee.

It follows recent comments by David Hollingworth of mortgage brokers London and Country, who told the Telegraph that many mortgage lenders are increasing their fees for their most competitive mortgage deals, as customers look to switch to a fixed-rate loan over fears of future interest rate rises.