New mortgage products launched

Those wishing to compare the mortgage rate of different products on the current market could consider two more options as of Monday.

Newcastle Building Society has announced the launch of two new mortgages in its range, the first being a three-year stepped discount product which offers an annual concession on Newcastle’s current standard variable rate of interest (SVR).

The discount – which is applied until January 31st 2010 – cuts the SVR rate from three per cent to one per cent.

However, according to the BBC consumer guide, those entering into this type of mortgage plan must remember that at the end of the discounted period, the rate will increase back to the provider’s SVR.

A “best buy” two-year fixed mortgage is also being launched, with a rate of 1.8 per cent until January 31st 2009. After this date, the rate reverts back to the SVR, including tie-ins until 2013.

“With these additions to an already competitive mortgage range we hope that customers will be able choose a mortgage product that suits their financial situation and that they feel they can comfortably repay,” said Steve Urwin, senior executive of marketing and new media at the building society.

Both products are available at up to 90 per cent loan-value, with loans offered between £15,000 and £500,000.

© Adfero Ltd

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