22-02-2008
Northern Rock withdraws high-LTV mortgage product
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Moneyfacts.co.uk has confirmed the withdrawal of Northern Rock's high loan-to-value (LTV) mortgage proposition.
The organisation has speculated that the mortgage lender has opted to withdraw its 125 per cent LTV mortgage product as a consequence of external pressure, generated as a result of the high-risk terms of the deal.
"Northern Rock is at the start of a difficult journey and this appears to be one of the first of many prudent steps they are likely to undertake along the way," said Moneyfacts.co.uk.
It was noted by the comparison site that Northern Rock has repriced its mortgage portfolio since February 7th, in a way which leaves it in an "uncompetitive position".
Moneyfacts.co.uk believes that Northern Rock's repricing decision may motivated by a desire to reduce the number of new mortgage applications.
In other news on Northern Rock, proposals to nationalise the mortgage lender were yesterday passed through parliament.