Nationalized bank, Northern Rock has been forced to withdraw the launch of its £99 mortgage application fee owing to some technical problem.

The lender had planned to cut the fee for fixed rate, tracker and buy-to-let mortgages for people buying the property by 60 percent to £99 from Monday.

But the reduction has been delayed due to internal system error.

However, it has promised to accept all the application submitted by the customers who applied for the purchase and buy-to-let products on August 23.

Northern Rock will charge the previous application fee of £250 for all the applications submitted after Monday, till the reduction is implemented.

According to the spokesman of mortgage lender, "We are working to implement the fee reduction as quickly as possible and regret any inconvenience to customers."

The reduction has been introduced to attract borrowers after the launch of summer offer of a flat £99 fee by First Direct in the beginning of July proved successful.

Northern Rock is only making reduction in its mortgage application fee but the customers still have to pay the product fee of £995 to the lender.