Buy-to-letApr 7 2017

Newcastle increases buy-to-let overpayments

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Newcastle increases buy-to-let overpayments

Newcastle Intermediaries has raised the level of overpayments allowed without penalty across its buy-to-let range.

The lender now accepts 10 per cent of the balance a year in overpayments, in addition to its existing policy of £499 regular monthly overpayments.

Newcastle’s buy-to-let lending policy has no maximum age limit and includes five-year fixed rate products stress tested at 145 per cent at 4 per cent.

Ben Smith, product development and propositions manager at Newcastle Intermediaries, said: “As we continue to grow our buy-to-let offering, the introduction of additional overpayments reflects our commitment to the market and to providing more choice and flexibility for intermediaries to access our buy to let product range.”

Tyne and Wear-based mortgage specialist Justin Furness said: “The buy-to-let industry has had such a hard time ever since the stamp duty threshold increase, and now investors cannot offset their interest-only payments.

“They needed something in the industry to help. We have investors who are so disillusioned with the buy-to-let market they are putting their money somewhere else, so to keep things going they need something to help these investors. 

“It is good, and I think it needs more to keep the buy-to-let industry moving along.”

simon.allin@ft.com