Newcastle Intermediaries has launched a range of mortgages for 80 per cent loan-to-value, including a number of what it has tagged “best buy offers”.
The products include a range of fixed terms for borrowers looking to secure a mortgage with a 20 per cent or less deposit, including first-time buyers or home movers.
The two-year product is fixed at a rate of 2.05 per cent, (or 5.3 per cent APR) until 31 August 2019 and comes with no reservation or completion fees, a free standard valuation and also a £200 cash back incentive.
For borrowers wanting to fix their repayments for a little longer, the market-leading three-year deal is available at 1.85 per cent (5 per cent APR) until the end of August 2020.
Also a 10-year fixed rate product at 3.29 per cent (4.2 per cent APR) could suit those who want long-term reassurance of fixed repayments. This product also comes with no reservation or completion fees, a free standard valuation and £200 cash back incentive.
In addition, Newcastle Intermediaries has increased the level of overpayments allowed without penalty across its residential range. These products allow borrowers to overpay by 10 per cent of their mortgage balance per annum, over and above the existing policy, which allows £499 regular monthly overpayments.
Provider view
Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: “We’re pleased to be able to support borrowers with a 20 per cent deposit with such a strong and competitive range of products.”
Adviser view
Helen Howcroft, managing director at Islington-based IFA Equanimity, said: “It is good to see that Newcastle has increased the amount that individuals can overpay so that they are now in line with the rest of the market.
“This does provide flexibility especially where an individual either receives a bonus at work or an inheritance which is especially important when money is earning such little interest in the bank.”
Fees
Both the 10-year and the 2-year fix are fee free. The 3-year at 1.85 per cent has a £199 reservation fee with an £800 completion fee, the other products are fee free.
Verdict
The last thing most clients want to do is overpay on the mortgage in periods of normality, but there will always be a time when the marathon of paying a 25-year mortgage suddenly breaks out into a sprint due to an unexpected windfall – usually, and unfortunately, due to a family inheritance. The backlash against the early repayment charge is something we can all recognise in the “I’m giving you more money, why am I being penalised?” sense, so it is nice to know that these particular products come without the overpayment charge.
Obviously, for Newcastle its reputation rests on the extremely close relationship between its underwriters and advisers in the same way that other providers, such as Clydesdale and Metro, level their offer.
