Newcastle Intermediaries says it has refreshed its residential mortgage portfolio with the introduction of three-year fixed-rate loans.
It says the move is a bid to “meet the needs of borrowers with lower deposits looking to achieve their homeownership goals”.
The range includes a 95% loan to value, three-year fixed-rate deal at 3.8% (4.0% annual percentage rate of charge,), with early repayment charges of 3% until 31.10.2023, 2% until 31.10.2024 and 1% until 31.10.2025.
This product is available on house purchases and re-mortgages up to £500,000, comes with no product fees, offers £500 cashback and the capacity to pay 10% of overpayments a year.
The offer comes as UK house annual price growth “slowed modestly” to 10.7% in June leaving the average price of a home at £271,613, said Nationwide last week.
Newcastle Building Society head of Intermediary mortgages Franco Di Pietro says: “As average UK house prices reach an all-time high this year, more borrowers are looking to purchase properties with smaller deposits.
“The introduction of a new range of higher LTV three-year fixed rates underlines our commitment to providing brokers with attractive solutions that meet the needs of their clients. Whether borrowers are looking to purchase or remortgage, our higher LTV range continues to provide choice to lower deposit borrowers.”
