Mortgages  

Newcastle’s 3-year fix

Newcastle’s 3-year fix

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.

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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.”

Adviser view

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.”

peter.walker@ft.com