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Newcastle to drop SVR to 3.96 per cent
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.
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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.