First-time Buyers

Newcastle BS responds to borrower demand

Adam Williams
Written By:
Adam Williams

Increased demand for fixed rate deals has driven Newcastle Building Society to launch a new range of products.

The North East-based mutual said that demand for fixed rate deals was increasing, with speculation about a base rate increase continuing during the summer months.

Newcastle has launched a number of two- and five-year deals, available for borrowers with between a 5% and 10% deposit.

The new range includes a 3.39% two-year fix, on offer to 90% loan-to-value, plus a 4.38% deal for those with a 5% deposit.

For those looking to fix for longer, a five-year deal is available at 3.84% for those with a 10% deposit and 4.89% up to 90% loan-to-value.

Steve Urwin, managing director sales and marketing at Newcastle Building Society, said the lender was responding to changes in the market.

“The fixed rate market has picked up and represents 88% of the total lending in the UK, which is also considerably higher than in previous years, which could be attributed to the mounting speculation about when the Bank of England Base Rate will rise,” he said.

“So, in response to this, we have launched two and five year products; at either 90% or 95%, so it’s ideal for first time buyers or remortgages customers without a lot of equity in their properties. As well as the competitive rates, the products come without fees, which help make all important savings at a time when every penny counts.”