Newcastle Intermediaries has introduced what it claims is a “market-leading” three-year fixed rate at 1.99 per cent.
Available at a maximum loan-to-value (LTV) of 80 per cent, the residential mortgage also comes with a £499 completion fee – which can be added to the loan – and a £199 reservation fee payable up-front and non-refundable.
Steve Carruthers, head of mortgage distribution for Newcastle Intermediaries, said three-year fixed rates have increased in popularity.
He added: “They combine current competitive lending rates with the reassurance that mortgage payments will be fixed for the period.
“House buying or remortgaging used to involve a choice between a better rate or the certainty of a fixed product.”
Rachel Springall, spokeswoman for Moneyfacts Group, confirmed the new deal was the lowest rate at 80 per cent LTV three-year fix currently on the market and also appeared in their best buy tables.
She said: “It has a reasonable fee and a low rate, which is why it made it into our pick of the week too.”
Marcus Beech, owner of Your Finance Today, said: “It can be used for home purchasers or remortgage clients looking to pay down debt or improve their home – at this loan-to-value it makes for a fantastic proposition for our customers.”