Northern Rock Mortgage

Northern Rock Mortgage

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Northern Rock used to have a mortgage that allows a borrower to have up to 125% of the price/valuation of the property. Northern Rock achieved this by allowing up to 95% of the property as a mortgage (secured loan) and up to 30% or 30,000 (whichever was the smaller) as an unsecured loan but with the same mortgage interest rate applied across both parts.

Northern Rock allowed overpayments without penalty, even on fixed rates. Penalties were only payable on full redemption only.

However, Northern Rock has withdrawn this type of mortgage and is lending only to borrowers who have a deposit.

Northern Rock Mortgage
  • A Northern Rock mortgage (and unsecured loan) used to give you 125% of the property's value
  • It means you got a mortgage to buy your home and got up to a 30,000 unsecured cash reserve to spend the way you want ed.
  • The unsecured cash reserve and the mortgage were at the same interest rate
  • You could dip into your unsecured cash reserve whenever you need to
  • Take time off paying the mortgage when you needed a break
  • Pay more to shorten the life of the mortgage
  • Pay less if you need to
  • The Negatives !
  • But remember that you were borrowing (as a whole) an amount in excess of the value of the property. That meant you would have had to wait a while before you could sell again, if you want to clear the total outstanding balance at the time.
  • The interest rate was not as competitive as borrowing with a deposit.



'Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage