At 60 per cent loan to value (LTV), the fee-free two-year fix is priced at 4.99 per cent and the £999 fee paying option has a rate of 4.79 per cent.
The products are subject to early repayment charges of two per cent in the first year of the fixed rate period, and one per cent in the following year. Borrowers are allowed to make overpayments of up to 10 per cent each year.
Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “We are deeply committed to fostering long-term relationships with our broker partners, not just transient interactions, that’s why we’re continually striving to enhance our proposition, with a product range that delivers value for both new and existing customers.
“We believe in rewarding our existing customers by offering them preferential rates, so to acknowledge this loyalty and say thank you, we’re reducing rates for existing customers looking to product transfer with us.”
Buckinghamshire BS reduces holiday let rates
Buckinghamshire Building Society has reduced the rate of its two-year fixed holiday let product to 5.99 per cent.
This is available for purchase and remortgage against properties in England and Wales. The maximum LTV is 75 per cent, and loans vary between £50,000 and £750,000.
The mutual will also accept applications from individuals or limited companies.
Claire Askham, head of mortgage sales, said: “Although holiday let products might make you think exclusively of a hot Cornwall beach in the middle of summer, we’ve actually seen a high level of enquiries for this type of mortgage throughout November and the beginning of December.
“The demand for UK-based holiday lets has risen dramatically over the last few years following Brexit and the Covid pandemic, making ‘staycations’ more popular than ever.
“These factors, combined with diminishing returns on traditional buy-to-let properties due to changes in taxation and increased regulation, has resulted in investors diversifying their portfolios and looking at areas such as holiday letting more favorably.”
