The cost of its five-year fixed rate mortgage has been chopped by 0.20% to 2.45%, up to 75% loan to value. The deal is available on loans up to £1.5m and carries a fee of £1,999.

For those with 20% upfront the rate rises to 2.49%, available to £1m, and with a £1,999 fee.

Early repayment charges apply on both mortgages for five years, although 10% annual overpayments are allowed.

Stuart Miller, customer director at Newcastle, said: “I’m pleased to announce these rate reductions on our five-year fixed large loan products. We know that customers appreciate flexibility and choice when it comes to securing a mortgage that’s right for them.”

The large loans are available on a repayment or interest-only basis, up to maximum income multiples of 5.75. The lender can take 100% of bonus and commission in account, subject to specific lending criteria.