Newcastle Intermediaries has cut rates on interest-only loans by up to 25 basis points.
Newcastle Building Society’s broker-only arm says the reduced rates include a five-year fixed-rate offer at 5.55% (6.6% annual percentage rate of charge), with early repayment charges of 5% until 30 April 2025, 4% until 30 April 2026 and 3% until 30 April 2027, 2% until 30 April 2028 and 1% until 30 April 2029.
A two-year fixed rate at 5.85% (7.0% annual percentage rate of charge) is also available, with early repayment charges of 2% until 30 April 2025 and 1% until 30 April 2026.
Both interest-only products are available at up to 75% loan to value, with an additional 5% LTV able to be secured on a repayment basis, come with a £1,499 product fee, and offer an overpayment facility of 10% each year plus additional monthly overpayments of £499.99.
Newcastle Building Society head of intermediary mortgages Franco Di Pietro says: “Following the rises to the Bank of England base rate we have experienced growing demand for interest-only products, signalling that more borrowers are exploring the option to ease affordability issues.
“That’s why we are enhancing our offering by reducing rates across our range of products, including interest-only, and offering a range of fee options, as we look for ways to better support our broker partners and their clients.”
