Newcastle Building Society cuts rates on new home loans
Newcastle Building Society has stepped up its deposit unlock program for customers with small deposits by reducing tariffs and increasing the maximum purchase price.
The mutual’s program was launched in June and aims to provide more options for borrowing on new homes to customers with a 5% down payment.
The lender says a two-year fixed rate deal is available at 2.79%, down 0.71% from the previous rate. And a 0.56% cut was applied to its five-year fixed rate offer, now available at 3.19%.
Both loans are product-free, with the lender introducing free standard appraisals for properties up to £ 500,000 and £ 500 in cashback.
A prepayment charge of 2% until February 28, 2023 and 1% until February 29, 2024 is due on the two-year product.
TThe five-year product carries an early redemption commission of 5% until February 28, 2023, 4% until February 29, 2024, 3% until February 28, 2025, 2% until February 28, 2026 and 1% until February 28, 2027.
The company also raised the maximum purchase price for the program from £ 330,000 to £ 600,000, “reflecting the national reach of the program”.
The program, backed by the Federation of Home Builders and supported by selected national builders, was rolled out across the country in September.
The lender adds that “a further increase in the number of developers involved in the program is expected later this year.”
Franco Di Pietro, Head of Intermediate Mortgages at Newcastle Intermediaries, said: “Deposit Unlock is a real innovation and offers low deposit buyers a great option for new construction.
“As the first lender to market the program and roll it out nationally, this means we’re also the first to respond to broker feedback, refining the proposition to make it an even more attractive option for clients. and expand access to the product line across the country. “