Newcastle Intermediaries has introduced significant rate reductions across its Interest Only mortgage proposition, with cuts reaching up to 1%.
Among the revised rates, a notable offering is the 5-year fixed rate now available at 4.65% (6.2% APRC). This product includes a tiered early repayment charge structure, starting at 5% until 30th June 2025, and gradually reducing each year until it reaches 1% by 30th June 2029.
Additionally, a 2-year fixed rate at 5.05% (6.8% APRC) is available, featuring early repayment charges of 2% until 30th June 2025 and 1% until 30th June 2026.
The range of 2- and 5-year Interest Only products are accessible up to a 75% loan-to-value (LTV), with an option to secure an additional 5% LTV on a repayment basis. Both options come with a product fee of £1,499 and allow for an overpayment facility of up to 10% each year.
Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “As rates start to reduce market-wide, we are still experiencing demand from brokers and their clients who are wanting to utilise Interest Only products.
“We are pleased to be able to make significant reductions to rates across our range of up to 1%, which, alongside our flexible lending criteria, will support borrowers looking to purchase or remortgage a home.”
