Newcastle Intermediaries has launched a 95% loan-to-value (LTV) 5-year fixed rate mortgage, available for purchases and remortgages.
The mortgage is available at 2.90%, comes with fees of £498, 10% overpayments per annum and an early repayment charges ranging from 5% to 1% after each year.
Stuart Miller, customer director at Newcastle Building Society, said: “Supporting people own their own home is key to our purpose, so we’re pleased to see that the first-time buyer market remains very active.
“The launch of this best buy 5-year product along with the refresh of our already competitive range will give borrowers choice on how long they fix their rate. We adopt a flexible and common-sense approach to underwriting adding further value to our first-time buyer proposition.”
Alternatively, a 2.59% 2-year fixed rate is available at 95% LTV, also for purchases and remortgages. This comes with fees of £498 to pay, 10% overpayments per annum and an early repayment charge of 2% until 31 October 2020 and 1% until 31 October 2021.
Moneyfacts said: “This new deal from Newcastle Building Society becomes the lowest in its sector and may well attract borrowers who have the required 5% deposit.
“During a period of economic uncertainty, it’s great to support for borrowers who are hoping to lock into a competitive rate on a longer-term deal but only have a small deposit to put down upfront. As with any deal, borrowers would be wise to weigh up the overall true cost before they apply.”