Newcastle Building Society has dropped its Standard Variable Rate (SVR) by 2.03 per cent to benefit customers with SVR-linked accounts or nearing mortgage term-end.
The lower SVR also means the stress test for new mortgages will be more affordable.
Effective from 1 December 2020, the mutual’s residential SVR in England, Scotland, Wales and Northern Ireland will be 3.96 per cent, a reduction of 2.03 per cent on the previous rate of 5.99 per cent.
Stuart Miller, customer director at Newcastle Building Society, said: “As a member-owned organisation we’re committed to supporting our customers own their own home by understanding their needs and taking a human, flexible approach to lending.”
In October, Newcastle extended its joint mortgage sole proprietor (JMSP) mortgage range with a five-year fixed product, which allows family members to help a relative own their home by jointly applying for a mortgage to boost the occupying borrower’s income.
Affordability is calculated using both incomes, but the mortgage will only be in the name of the applicant living in the property.
Back in the summer, Newcastle Intermediaries also relaunched its interest-only mortgage range with two 75 per cent loan to value (LTV) fixed rate products.
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
