N Rock offers new tracker

The lender - which pulled its tracker deals in November 2008 - has launched a 3.29% deal at 65% LTV with a £995 fee for both purchase and remortgage and a fee-free option at 3.89%.

The move follows the launch last week by HSBC of a two year tracker deal with rates starting at 1.99% for those with a 40% deposit.

A spokesperson for Northern Rock said the deals were part of the Bank's drive to offer attractive products within a self-imposed competitive framework.

She added: "The deals show that we are operating under constraints where we want to be competitive but not compete unfairly for deposits."

Richard Morea, technical manager at L&C, said consumers would be able to get better deals by going elsewhere.

He added: "It is good for the market that Northern Rock has reduced its rates, and it shows that it has a desire to lend and be competitive in the market. However, I think that other lenders may start to cut rates as well, and this product will be beaten by better deals."