With fixed rates starting at 4.29% until 30th June 2013, up to 5.74% until 30th June 2016 and LTVs up to 80%, the products are competitive, but according to Matthew Arena, managing director of Brilliant Solutions, one of the most notable products is a two year fixed rate with no early redemption charge.
He said “Newcastle has produced a number of products, which include a number of fixed rates which are very flexible and allow the introducer and his client to choose the best combination of rate versus cost.
“If the client does not want an ERC, then the lender has a two year fixed rate option at 4.64%. If he wants the keenest rate then that same product is available at 4.29% with an ERC. I think the two year fixed rate with no ERC will be very popular, particularly at this time when there is so much uncertainty about where base rates are going to end up. A no ERC fixed rate provides a level of flexibility which gives clients a safe haven but where they are not tied if rates do not actually increase.”
Steven Marks, intermediary services executive at Newcastle Building Society, said: “We believe in developing products that the marketplace wants and our no-ERC is a prime example of this. More and more customers require flexibility with their mortgage product, given the low interest rates and competition in the marketplace, which was one of the main reasons why we introduced this product. We are pleased the reaction from Brilliant Solutions’ introducers is very positive as we believe that it will be popular in the marketplace.”
