Newcastle Intermediaries cuts BTL rates

Jake Carter

August 5, 2021

cut rates btl

Newcastle Intermediaries has reduced rates on its buy-to-let (BTL) range by up to 0.15%, including two with zero product fees.

The lender’s 5-year fixed rate at 2.45% is a discount of 0.15% on the previous rate.

This is available at a maximum loan-to-value (LTV) of 75%; tiered early repayment charges (ERCs) apply, starting at 5% in the first year before dropping to 1% in the final year.

Alternatively, borrowers can fix for a shorter period of time with a 2-year fixed rate at 2.39%.

It is also available at a max LTV of 75%, where an ERC of 2% until 28 February 2023 and 1% until 28 February 2024 applies.

Both products come with free standard valuation on properties of up to £500,000 and a £500 cashback to assist with costs.

Overpayments of 10% per year are allowed, in addition to the £499 regular monthly overpayments already permitted.

The interest coverage ratio (ICR) is 145% at a rate of 4% for product terms of five years or more, and the 2-year ratio is 145% at a rate of 5.5%.

There is no maximum age criteria and every case is individually underwritten.

Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “We’re delighted to reduce rates on our BTL products which include these competitive fee-assisted options for borrowers.

“They offer flexibility, competitive rates and a number of benefits, underpinned by our adaptable, nuanced approach to underwriting.”

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