Mortgages  

Newcastle ditches early repayment fee on 80% LTV loan

Newcastle Intermediary Services, part of Newcastle Building Society, has launched an 80 per cent loan to value product with no fees and no early repayment charges.

The product is fixed at a rate of 3.15 per cent for two years, which then reverts to a standard variable rate, currently 5.99 per cent, for the remainder of the term. The overall cost for comparison is 5.6 per cent APR, according to the firm.

It has no reservation fee or completion fee and where loans exceed £500,000, the completion fee will be 0.3 per cent of the advance amount. It has a free standard valuation on properties up to and including £500,000 and has free legal fees for re-mortgages in England and Wales only or £300 cashback.

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This new product allows customers to redeem at any time, if market conditions change favorably for them, without penalty.

The product will be made available through Legal & General, Openwork, Sesame, Pink, The Mortgage Alliance, First Complete, Intrinsic, Positive Solutions and Brilliant Solutions.

Steven Marks, corporate development executive, said: “The improved pricing we have on this product, such as the no fees and no ERCs, enable our borrowers to have the reassurance of a market-leading fixed rate but with added flexibility.

“So, for instance, say a borrower’s circumstances changed, and they wanted to reduce or clear their mortgage, then they can redeem their mortgage, penalty-free.

“This gives extra choice to customers as it means the decision they make on this product can be a short-term not long-term one, which will hopefully encourage even more movement in the housing market.”