Newcastle Intermediaries has launched a two-year fixed rate self-employed mortgage product at 2.2 per cent.
The home loan is available at a maximum 60 per cent loan-to-value (LTV), has no reservation or completion fees, a free standard valuation and increased overpayment facilities of 10 per cent of the balance a year.
To make the mortgage application process easier for those recently self-employed (those who have been trading as self-employed for less than two years), the lender will apply individual case assessment, requesting either one year’s accounts, an SA3012 form, or a completed accountant’s certificate.
Tony Nunn, sales director of Charles Derby Mortgage Bureau, said this was a step away from the Newcastle’s traditional self-employed lending policy and was a very keenly priced fee free rate showing commitment to this sector.
Mr Nunn said: "They have also launched another version of this product today of 1.9 per cent but includes a £199 reservation fee and £800 completion fee. Another product fit for lending in the real world."
Jonathan Harris, director of mortgage broker Anderson Harris, said another funding option for self-employed borrowers was extremely welcome, particularly as Newcastle will look at applications from those who have been trading for less than two years.
Mr Harris said: "Applying individual case assessments to these borrowers is a sensible move as one self-employed client is very different from another and one size does not fit all.
"At 2.2 per cent fixed for two-years with no fees and a free standard valuation, which will help keep initial costs low, it adds up to being a pretty good deal from Newcastle."