The mortgage arm of Newcastle Building Society has announced today that they will now offer a 7-year fixed mortgage product to satisfy a growing demand in the mortgage market for longer term fixed products.
In recent months, the uncertainty of the UK economy and rise in interest rates across the board has got a lot more mortgage customers seeking out longer fixed mortgage products. Mortgage customers are looking for more certainty and stability with their finances just in case something dramatic happens in the future such as recession or an even higher climb in interest rates. By securing your mortgage product for a longer fixed mortgage period, you can avoid your mortgage rising too much for longer rather than having to change your product ever 2 to 5 years.
What Fixed Mortgage Product Are Newcastle Offering?
Here is all the information we have about this new fixed mortgage product that the Newcastle are offering:
- The product is priced at 3.26% (3.6% APRC) and comes with early repayment charges, starting at 5%, and decreasing by 1% per year.
- The 80% loan-to-value (LTV) product is available on house purchases and remortgages up to £1m.
- It also provides the option of 10% overpayments per annum as well as £500 cashback and a free standard valuation.
National sales manager at the Newcastle Mark Wilson had this to say:
“As the market evolves, we are committed to providing a range of solutions that address the challenges brokers face as consumers look to remortgage or purchase a property in the coming months. We are acutely aware of concerns borrowers have due to the increasing cost of living. Against a backdrop of rising costs and energy bills, our seven-year fixed rate mortgage product offers borrowers peace of mind by delivering payment certainty, as well as protection against rising interest rates.”
What Do The Experts Say About Newcastle’s Fixed Mortgages?
Content and communications manager at Oportfolio mortgages Louis Mason comments: “We are all a huge fan of fixing your mortgage here at Oportfolio. Of course, everyone situation is different and sometimes opting to not fix your mortgage or securing a variable rate mortgage is better however, with the uncertainty of the UK economy now, securing your mortgage and fixing it at a low rate is advisable. Normally, most lenders will offer a 2 or a 5-year fixed product but with Newcastle now offering a 7-year fixed mortgage rate, will we start to see other lenders following in suit? Who knows? What I do know is that more and more people are wanting to secure their mortgage for longer and we are always here and keep helping with anything our clients need.”
If you or anyone you know is concerned about fixing a new mortgage product, please feel free to give our friendly and helpful advisors a call today for a free chat.