Newcastle Intermediaries is introducing new fixed-rate mortgages with maximum loan to values (LTVs) of 95%, which it states will give more flexibility for borrowers.
This slate features five and three-year fixed rate loans, with the latter coming with interest rates of 3.06%. When it comes to early repayment charges, these have been set at 3% for August 31st next year, 2% for August 31st, 2024, and 1% for August 31st of the following year. The three-year fixed loans also have a year-on-year charge rate of 3.8%.
This rate of charge for the five-year fixed rate product is 3.7% annually, while the interest for it has been set at 3.09%. Charges for early repayment start at 5% if repayment is by August 31st next year, followed by 4% for that date in 2024, 3% for 2025, 2% for 2026 and 1% for 2027.
Both of the new products have a cash-back offer of £500, with valuations available at no cost up to a maximum of £500,000.
Speaking to Mortgage Strategy, Franco Di Pietro from Newcastle Building Society stated that the opinions of mortgage advisors had been sought in developing products that would help borrowers get into the market. He then added:
“For low deposit borrowers especially we recognise needs are evolving so we’re really pleased to introduce new three and five-year fixed rate options to give brokers additional options, backed by our flexible approach to underwriting.”
Any advisor who has done a CeMAP course will know that products with more flexibility are needed for borrowers right now.