Newcastle Intermediaries reduces interest-only rates

Newcastle Intermediaries has made rate reductions of up to 0.25% across its interest-only proposition.

The reduced rates include a five-year fixed rate available at 5.55%, with early repayment charges of 5% in year one, reducing to 1% in year five.

A two-year fixed rate at 5.85% is also available, with early repayment charges of 2% in the first year and 1% in the second year.

Both interest-only products are available up to 75% LTV 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.

Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “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.”