Newcastle Building Society has relaunched two competitive Offset mortgages offering a mix of features including a guaranteed rate for life, no completion or legal fees and free valuation up to £410.
Newcastle’s first Offset product is linked to the Bank of England base rate at the highly competitive rate of 0.50% above base rate guaranteed for the duration of the mortgage. On house purchases, customers are offered free completion fees, a free valuation up to £410 and £200 cash-back – which can help with legal fees. Cutting down on costs such as completion and valuation fees can be a significant help – particularly for first time buyers who may already be struggling with affordability issues. On re-mortgages the product offers no completion fees and free valuation up to £410. Borrowers in England and Wales also benefit from free legal fees.
This second option offers a highly competitive discounted rate of 0.10% below base rate for the first six months, with a completion fee from £450. After the initial six months this reverts to a rate of 0.50% above base rate guaranteed for the duration of the mortgage.
Another key feature on both offset options is the friends and family facility. This allows family members to offset their personal savings against another family member’s mortgage. Parents are therefore able to support their children by linking their savings deposits to their children’s mortgage.
For additional flexibility, again on both options, a drawdown facility allows customers to have access to additional funds whenever they need them. As long as any drawdown request is within the 75% LTV bracket customers will receive their money within 14 days of applying. There is no limit to the number of drawdown transactions, with a minimum of £500 and a maximum of £25,000 per transaction.
Steve Urwin, AGM Marketing and New Media at Newcastle Building Society, said:
‘This new Offset Mortgage offers highly competitive rates not only in the discount but also in the full term period of the mortgage. We have developed the product to offer a great combination of features, including fees-free options that cannot readily be found elsewhere. This mortgage is also a great product for anyone wishing to have the security of a guaranteed and competitive rate with the extra benefit of being able to enjoy financial help of their families and a flexible drawdown feature.’
