In addition to a competitive discounted rate, guaranteed for the life of the mortgage, the new Variable Rate Offset mortgage from Newcastle Building Society offers a drawdown facility of up to 75% LTV. The initial discount rate is 2.2% below Newcastle’s Standard Variable Rate (SVR) - currently at 6.04%. After 6 months this reverts to a discount of 1.5% from the SVR for the duration of the mortgage and is guaranteed never to rise more than 1% above the Bank of England base rate.
Newcastle’s Offset mortgage drawdown facility gives customers increased flexibility, and means they have convenient access to additional funds to use on anything from a major home improvement to a holiday of a lifetime.
To take advantage of the drawdown facility customers are requested to complete a simple agreement form. As long as the drawdown facility remains within the 75% LTV limit the customer will receive the funds 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.
With a starting rate currently at 3.84% reverting to 4.54%, a completion fee of just £345 and no redemption penalties, this is an extremely competitive offset mortgage product.
Key features of the Variable Offset Mortgage:
·The product has a six month discount period at 2.2% from SVR – current interest rate 3.84%
·For the rest of the term of the mortgage interest is paid at 1.5% less than the SVR, which currently works out to be 4.54%
· The drawdown facility of up to 75% LTV allows holders increased flexibility
· Completion fee for the mortgage is from £345
· The Variable Offset mortgage can be linked to an unlimited number of savings or current accounts.
Robert Hollinshead, Chief Executive of the Newcastle Building Society, said:
“This new Offset mortgage has all the features of our previous Offset products, highly competitive rates both in the discount period and continued into the full term of the mortgage, while in addition including a convenient drawdown facility of up to 75% LTV. This allows customers to arrange access to additional borrowing of up to £25,000 at any one time. We believe this mortgage, especially with its competitive rate and drawdown facility, will help meet the needs of many of our borrowers, both at the time of arranging the mortgage loan and for future expenses.”
