Northern Rock is returning to offer mortgages at the pre-recession rate of 90%, as it aims to boost its profits and market presence before returning into private ownership.
You can also bag a two-year fixed rate at 5.99%, a three-year fix at 6.49% and a five-year at 6.59%. The higher rate will apply to borrowers who stump up less money as a deposit.
The move from the bank, which was bailed out by the taxpayer only three years ago, is bound to raise eyebrows from those who see low deposit mortgages as carrying with them more risk.
Since the credit crunch hit, we’ve seen far fewer mortgage providers offer 90% deals, though through the 80s and 90s first time buyers often borrowed more than this on average.
Since its collapse, Northern Rock had capped its loans at 85% and maintained its standard variable rate.