flexible mortgages
Looking for flexibility in the way you repay your mortgage?
Flexibility comes as standard across our Residential and Buy To Let products (excluding Lifetime). So, when you choose a Northern Rock flexible mortgage, you will be able to use the flexible features listed below.
When using flexible features, we will assess your ability to repay any revised total mortgage balance and associated monthly payments, based on your individual circumstances at the time. This will include an affordability assessment, which may require income verification. The use of flexible features is subject to Northern Rock’s prior agreement.
Mortgage Overpayments
If you would like to pay a bit extra each month or you would prefer to overpay with a lump sum, you can. With our flexible mortgages you can make unlimited, penalty free overpayments, provided that the mortgage is not redeemed in full.
As overpayments reduce the amount of money you have borrowed on your mortgage, this could result in a saving in the amount of interest charged, helping you to pay off your mortgage earlier.
Some of the most common reasons our customers take advantage of overpayments are when they have received bonuses, windfalls, an inheritance or through endowment policy proceeds.
Following receipt of an overpayment, your outstanding balance and the interest charged will be recalculated.
If you pay by Direct Debit and the overpayment is £500 or more your monthly payment will be changed automatically. You have the option to leave your monthly payment unchanged, which will have the effect of setting up a regular overpayment and further reduce your outstanding mortgage balance. To arrange this you would need to contact Northern Rock.
If you pay by Standing Order you will need to contact your bank if you want to change your monthly payment following an overpayment. Alternatively, if you wish to set up a regular overpayment you can leave the payment unchanged.
Borrow back
If you make overpayments which total at least £500, then subject to Northern Rock's prior agreement, you may be able to borrow back some, or all, of the amount overpaid.
The interest rate charged on any amount that you borrow back will be at your prevailing mortgage interest rate and the minimum amount that you can borrow back at any one time is £500.
Underpayments
If you make any overpayments, you may apply to make a lower monthly payment or stop your monthly payment.
Mortgage Payment Holidays
You may apply for a 1 month payment holiday for every 9 consecutive full monthly payments you make. The maximum payment holiday period is 3 months, which can be applied for once you have made 27 consecutive full monthly payments.
The number of consecutive monthly payments is reset to zero if you do not make a full monthly payment in the month it is due or we agree for an underpayment to be made.
Please note that interest will continue to be charged during a payment holiday. Taking a payment holiday will also increase the outstanding balance upon which future loan interest charges are calculated.
Contact Us
To use any of the flexible features simply call us on 0845 602 8301. Our lines are open 8:30am to 5:00pm weekdays and 9.00am to 12.00pm on Saturday.
View our current mortgage rates to help choose a flexible mortgage.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.