Newcastle BS 

Newcastle cuts buy-to-let rates

Newcastle cuts buy-to-let rates

Newcastle Intermediaries has reduced its buy-to-let (BTL) rates across a range of its two, three and five-year fixed rate products.

The lender is now offering a 75 per cent LTV five-year fixed rate at 2.75 per cent, representing a reduction of 0.3 percentage points on the current rate. The product includes an overpayments facility of 10 per cent per year.

Early repayment charges stand at 5 per cent until May 31, 2020, decreasing by 1 percentage point each year up to May 31, 2024.

A five-year fix with no product fees is also available at 2.95 per cent, a reduction of 0.4 percentage points on the current rate.

The 75 per cent LTV deal includes free standard valuation, £500 cashback or free legal fees for remortgaging, and a 10 per cent overpayments facility per year.

Early repayment charges are the same as those of the 2.75 per cent fixed rate product, while there is no maximum age restriction on either product.

Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: "This reduction of rates, especially on our longer five-year fixed mortgages means landlords and other potential investors have the chance to save some money; either by reducing their current rate or by choosing our five-year fixed mortgage with no fees to pay, £500 cashback or free legal fees for those who are remortgaging, providing choice and flexibility."

Greg Cunnington, director of lender relationships and new homes at Alexander Hall, welcomed the changes.

He said: "Landlords who have committed to keeping their properties as long-term investments are increasingly attracted to five-year fixed rates for longer-term stability in the rate and mortgage payments, and so moves like this from Newcastle to decrease their rates so significantly are very well received."

Dippy Singh is a freelance reporter for FTAdviser