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Newcastle Building Society

Type: Fixed rate mortgages

Description: Newcastle Building Society has launched three new best buy fixed-rate mortgage deals on three-, five- and ten-year terms, with competitive rates starting at 5.95 per cent.

Conditions: The three-year best buy range offers a 6.05 per cent fixed rate until 30 September 2011, through London & Country. The product offers a £999 completion fee, £99 reservation fee and has a maximum LTV of 75 per cent.

The five-year best buy mortgage offers 5.95 per cent until 30 September 2013, through moneysupermarket.com. The product offers a £1399 completion fee and £99 reservation fee and has a maximum LTV of 75 per cent.

The ten-year best buy mortgage offers 5.95 per cent fixed rate until 30 September 2018, through moneysupermarket.com. The product offers a £999 completion fee, £99 reservation fee and has a maximum LTV of 75 per cent.

These products are offered on loans between £15,000 and £500,000, with loans over £500,000 subject to prior agreement. Early repayment charges apply at 3 per cent of the outstanding balance for the fixed rate term.

Contact: www.newcastle.co.uk

Verdict: It is encouraging that lenders are once again launching competitive products, which are priced to sell. Newcastle's approach of using favoured suppliers to distribute their products is typical of their focused approach. The choice of London & Country, a traditional mortgage brokerage firm, and Moneysupermarket.com, an internet-only outfit, shows that they are running a dual marketing campaign. However, the LTV of 75 per cent is symptomatic of an industry that is still nervous.

Rating: 3/5