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Lender says...

Astra Mortgages, the intermediary arm of Norwich & Peterborough Building Society, has reduced the rates on its tracker and variable rate mortgages.

The lender, which has just celebrated its first full three months in the market, revealing its point of sale decision system, known as Pos-D, received 74 per cent of applications online.

The new products include a Pos-D Bank of England base rate tracker at base rate plus 1.19 per cent.

It has a maximum loan-to-value of 85 per cent, a £999 fee, as well as free legal fees and £200 cashback for remortgages.

The same product is available without incentives up to 85 per cent LTV and with a £799 fee.

Astra has also launched a tracker mortgage with incentives and a tracker deal without incentives.

The tracker with incentives is set at base rate plus 1.29 per cent with a maximum LTV of 85 per cent and a £999 fee.

The product comes with free legal fees or a £200 cashback for remortgages and £200 cashback for purchases.

The tracker without incentives follows the base rate plus 1.29 per cent, has a maximum LTV of 85 per cent and a £799 fee.

Graham Toy, managing director of Astra Mortgages, said: "We are delighted with the encouraging take up of Astra Mortgages, and in particular the growing use of our Pos-D system among advisers.

"We have already acted on valuable system feedback from advisers who share our passion to refine the process."

Adviser says...

Russ Tidmans, a mortgage consultant for Duffield-based Mortgageforce, said he was impressed with the new rate offerings from Astra Mortgages.

He said: "These rates are among the best available through intermediaries for customers looking at full term trackers at the higher loan-to-value end of the market.

"While the arrangement fees of £999 to £799 are probably about average for this type of deal, the incentives may just swing the customers in their direction.

"While there is a 10 per cent limit on the penalty free capital repayments during the first two years the deals may not necessarily appeal to those looking for full flexibility. There will still be quite a bit of interest in the deals."

Rating: 4/5 stars