The state backed lender Northern Rock has joined the party of Santander, HSBC, NatWest and Skipton Building Society, offering 90 percent Loan to Value (LTV) mortgages to first time buyers.
The new range does not have any product fees and starts at 5.99 percent fixed rate for the first two years. Northern Rock will offer the products both direct and through its intermediaries.
The lender will also offer 6.49 percent fixed rate for three years and 6.59 percent for five years as part of the new product range.
Northern Rock’s latest product range shows the lender’s slow movement towards riskier lending after it received a government bailout package three years ago. Northern Rock has been known for its aggressive lending policy and before the government bailed it out it had 125 percent mortgage LTV product called Together Mortgage.
Although some lenders are currently offering 85 percent LTV mortgage, only a handful lenders are offering 90 percent LTV mortgage products.