The mutual said this would help borrowers with mortgages maturing in the second half of this year, many of whom are on two-year fixes and will be repricing onto a lower rate.
Newcastle Building Society will allow borrowers to switch to a new product from the first of the following month after applying for the product transfer. The mutual said this would enable them to start saving immediately, and the mutual suggested that a typical borrower on a two-year fix would be nearly £300 better off if they switch three months early.
Further, borrowers will be able to make unlimited ERC-free lump sum overpayments when they arrange a product transfer, to help reduce their loan and monthly repayments even more before their new product starts.
Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “We know many borrowers are feeling the pressure of rising living costs and historically higher rates. By giving brokers the tools to switch clients early and flexibly, we’re making it easier for them to deliver immediate savings and long-term value.
“It’s an opportunity to offer meaningful value to clients navigating a volatile rate environment, while also earning their procuration fee sooner.”
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