Newcastle Intermediaries has added a large loan product with no early repayment charge to its residential mortgage range, in a move to offer more flexibility to clients.
The product is a two-year variable rate mortgage at 1.85 per cent and offered at up to 80 per cent loan-to-value (LTV), with a £1999 product fee.
It is available for purchase and remortgage. It is offered for a maximum of £1m at 80 per cent LTV and £1.5m at 75 per cent LTV, and with interest only availability subject to lending criteria.
Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said the large loan mortgage could accommodate more complex income structures and would help brokers deliver a bespoke service.
He added: "Our no early repayment product option gives clients the flexibility to make larger overpayments or even paying off the loan earlier than expected."
Rachel Lummis, mortgage adviser at Xpressmortgages, said Newcastle's latest product would suit clients needing a mortgage now, who do not want to commit and be tied into a two-year plus product.
This is because with no early repayment charges, borrowers can benefit from a competitive rate now but are free to repay the loan at anytime without penalty.
She said: "It is a great choice for those who are unsure of their next move and it is great to see lenders offering more choice for consumers and having a product range that has something for everyone."
Earlier this year, Newcastle cut rates across its residential range and expanded the distribution of its large loan products to all key accounts.
rachel.addison@ft.com
