Northern Rock delays mortgage fee reduction

Northern Rock has put off its announced cut in mortgage fees due to a problem with its computer systems.

The lender initially said last Friday (20 August) that it would be slashing its mortgage application fee from £250 to £99, as of this Monday for all customers buying residential or buy-to-let property.

However, an “internal system error” has forced Northern Rock to postpone the move until further notice. A spokesperson said it would honour the £99 fee for all applications submitted on Monday, but any arriving after that date will be charged the £250 fee until further notice.

A spokesman for the lender said:

“We are working to implement the fee reduction as quickly as possible and regret any inconvenience to customers.”