Existing clients of Newcastle Intermediaries are to benefit from a refreshed product transfer range, the lender has announced.
The refreshed products offer existing clients competitive rates, including a fee-free two-year fixed rate deal at 2.85 per cent with a maximum loan-to-value of 95 per cent.
The lender also has also reduced the rate on its five-year fixed rate mortgage by 0.16 per cent as part of the product refresh. The rate now stands at 3.29 per cent and is available at a maximum LTV of 95 per cent.
Stuart Miller, customer director at Newcastle Intermediaries, said: "We're committed to rewarding the loyalty of customers who choose to stay with us and transfer to another of our products - and these enhanced rates reflect that.
"Our recent expansion of our product transfer proposition to our intermediary partners acknowledges the important role they play for customers when reviewing their options at maturity."
According to Mr Miller, product transfers were the fastest growing area in the mortgage market in 2018 and mortgage industry speakers at the Financial Services Expo this year said product transfers are likely to dominate the mortgage market in 12 months' time.
Greg Cunnington, director of lender relationships and new homes at broker Alexander Hall, said: "Newcastle were a welcome lender addition into the product transfer space last year and so it is great to see them constantly monitoring and improving their proposition for clients here.
"With margins so tight for lenders at the moment I expect to see lenders remaining very competitive in their product transfer offerings as they fight to retain their existing mortgage clients, and the ultimate winner of these lower mortgage rates will be the client themselves."
Daniel Bailey, principle at Middleton Finance, said: "Product transfers are a part of the market that we are seeing a big demand for and will continue to do so for the rest of the year. Newcastle is offering their current borrowers some very competitive deals, especially at 90 per cent and 95 per cent LTV.
"It is a real positive step to see a lender rewarding loyalty especially at higher loan-to-value end of the market."
Jenny Turton is a freelance journalist