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Newcastle Intermediaries cuts rates on mortgage range

Newcastle Intermediaries cuts rates on mortgage range

Newcastle Intermediaries has cut the rates across its recently expanded mortgage range.

The lender now offers a two-year fixed rate at 2.05 per cent, a reduction of 0.48 per cent, available at a maximum 80 per cent loan-to-value (LTV).

Across the lender’s five-year fixed range, rates have been reduced by 0.42 per cent to 2.57 per cent at 60 LTV and cut by 0.41 per cent to 2.67 per cent at 80 LTV - both come with fees of £1,999.

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The lender made the changes after it widened distribution of its large loan products to all of its key accounts earlier this year.

Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said the latest rate reductions demonstrated the lender’s commitment to customers needing both flexibility and choice over a number of products.

He said: "Through exclusive direct access to our underwriters  they can consider affordability on a case-by-case basis, offering brokers a bespoke service to meet the needs of customers who often have more complex requirements."

A Newcastle spokesperson said, where applicable, the range included income multiples of up to x 5.75, and offered 10 per cent overpayments per annum, free standard valuation fees and interest only repayment.

Dylan Kelly, head of communications at Mortgage Advice Bureau Edinburgh, said the reductions represent increased confidence that, for the time being, rates are going to remain relatively low.

He said: "It is clearly a move by Newcastle to increase their distribution, by attracting customers looking for both competitive rates and flexible lending criteria.

"It is a positive move, as not all lenders with more forgiving lending policies offer market leading rates, often there is a compromise."

In May, Newcastle Intermediaries revamped its fee-assisted two-year fixed rate deals - including an option available at 95 per cent LTV. 

Speaking at the time, Mr Carruthers said the new products would help a range of borrowers including first-time buyers and those remortgaging. 

rachel.addison@ft.com