Northern Rock – encouraging new savers whilst discouraging new borrowers
Lisa Taylor, analyst at Moneyfacts.co.uk - the leading independent financial comparison site, comments:
“The increases to Northern Rock’s leading savings products today, including taking the top spot in the over 50s best buy charts with its Silver Saver Online, are a clear sign they are keen to win back some much needed savings balances. With so many competitive savings products available, it will be interesting to see if these latest rate rises are sufficient enough to lure savers back to Northern Rock.
“On the other hand, the withdrawal from the credit card market of Eskimo loans and the increased rates on the Northern Rock loans would appear to indicate a reduced appetite for lending on an unsecured basis. While Northern Rock is not alone in the loans market, the withdrawal of its credit card to new borrowers, aside from the market wide increasing of fees, is the first sign of the credit crunch affecting this market.
“Even Northern Rock’s secured lending has seen a tightening of criteria and is currently bucking the market trend by increasing fixed rates.”
As the Northern Rock situation continues to dominate much of the media, and with changes across many of their products this week, we thought a brief update might be of some help.
Savings (wef 30.11)
Silver Saver Online
Rate increased from 6.30% to 6.49%.
Tracker Online
Rate increased from 6.31% to 6.49%. Bonus for 12 months also increased from 1.06% to 1.24%.
Credit Card (wef 30.11)
Co-operative Bank backed Northern Rock Base Rate Visa will be withdrawn from sale to new customers.
Unsecured Loans
Northern Rock funded Eskimo Loans was withdrawn (wef 27.11).
Northern Rock loan rates increased on 23.11 by 2% to 10.9% APR
Mortgages
All 5-year 'Together' FIXED RATE MORTGAGES withdrawn.
2 year 'Together' FIXED RATE MORTGAGES withdrawn & replaced with rates increased by 0.30%.
About The Moneyfacts Group
Moneyfacts is recognised as the UK’s leading provider of independent personal finance information. For the last 20 years, Moneyfacts’ information has been the key driver behind many personal finance decisions, from the Treasury to the high street.
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