Mortgages  

Newcastle launches 10-year mortgage deal

Newcastle launches 10-year mortgage deal

Newcastle has launched buy-to-let products and a 10-year residential mortgage deal.

The rate on the two-year fixed rate product, which runs to 30 April, is 2.59 per cent with a completion fee of £1,999. An early repayment charge of 3 per cent applies for two years.

The five-year deal, which is fixed to 30 April 2021, is at a rate of 3.49 per cent with a completion fee of 2.5 per cent of the loan amount.

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Early repayment charges of 5 per cent, 4 per cent, 3 per cent, 2 per cent, and 1 per cent of the amount repaid apply.

Both deals are available at a maximum loan-to-value (LTV) of 75 per cent with no reservation fee and a free standard valuation.

The products will be provided to brokers directly through The Business Mortgage Company, which Newcastle Intermediaries teamed up with in 2015 on entering the buy-to-let market.

Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: “Since we launched into the buy-to-let market we have had a lot of interest in our products.

“Despite impending changes in the buy-to-let market we continue to see competition in the marketplace increase and in turn this has given landlords greater opportunities to shop competitively for the best interest rates.”

Newcastle Building Society has also launched a 10-year mortgage deal with a fixed rate of 3.29 per cent up to a maximum loan-to-value (LTV) of 80 per cent with no reservation or completion fees.

The deal comes with free legal fees on re-mortgages and purchases.

An early repayment charge of 3 per cent applies for five years. The deal also comes with a free standard valuation.

Charlotte Nelson, finance expert from Moneyfacts.co.uk, said: “With rumours constantly circling about the timing of a base rate rise, uncertain borrowers are starting to look for extra security from their mortgage deal, something this 3.29 per cent 10-year fixed rate mortgage from Newcastle Building Society certainly supplies.”

Jane King, mortgage consultant at London-based Ash-Ridge Asset Management, said: “The 10-year rate is not bad for a 10-year fix. It’s not for everyone, you have to be careful who you recommend it to, but otherwise a good deal.”