Newcastle Intermediaries is introducing new fixed-rate mortgages with a maximum loan-to-value (LTV) ratio of 95%, which it says will give borrowers more flexibility.
This list includes five- and three-year fixed rate loans, with the latter carrying interest rates of 3.06%. As for the prepayment charges, they have been set at 3% for August 31 of next year, 2% for August 31, 2024 and 1% for August 31 of the following year. Three-year fixed loans also have an annual charge rate of 3.8%.
This fee rate for the five-year fixed rate product is 3.7% per annum, while the interest for this has been set at 3.09%. Early redemption charges start at 5% if the redemption is made before August 31 of next year, followed by 4% for that date in 2024, 3% for 2025, 2% for 2026 and 1% for 2027.
Both new products have a £500 cashback offer, with assessments available free of charge up to a maximum of £500,000.
Speaking to Mortgage Strategy, Franco Di Pietro of the Newcastle Building Society said the opinion of mortgage advisers had been sought in the development of products that would help borrowers enter the market. He then added:
“For low deposit borrowers in particular, we recognize that needs are changing, so we are very pleased to introduce new three and five year fixed rate options to provide brokers with additional options, supported by our flexible approach to subscription.”
Any advisor who has taken a CeMAP course will know that products with more flexibility are needed for borrowers at this time.