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The new range includes residential flexible fixed rate mortgages from 6.49 per cent, buy-to-let mortgages from 6.49 per cent and lifetime mortgages from 6.99 per cent.

The residential mortgage range now offers a straightforward choice between two-year and five-year fixed rate products with either a £995 arrangement fee or a or a fee saver option.

The buy-to-let (BTL) mortgages offer a choice between two year flexible fixed rates and tracker for life products.

There is also a new loan-to-value limit of 90 per cent for all residential mortgages and a maximum 70 per cent loan-to-value for buy-to-let mortgages.

A new range of income multiples also applies, subject to credit score, for all residential applications.

The new multiples will range from 2.1 to 4.5 times income compared with the previous range of 2.8 to 4.9.

Ron Sandler, executive chairman of Northern Rock said: "This is the first major review of our mortgage product range since Northern Rock was taken into temporary public ownership. The changes reflect our determination to create a viable business in accordance with our published business plan and competitive framework.

"While we intend to reduce our mortgage book by accelerating redemptions, we also need to maintain a presence in the UK mortgage market and originate a modest level of new loans without distorting competition. We believe this new range will help us to do just that."