Newcastle launches interest-only 10-year fix

Journalist: Samantha Downes, Currently at the I (business editing some Sundays (freelance) and Mortgage Solutions

ended 14. June 2022

Brokers: are you happy with Newcastle's products or are there more competitive ones?

A press release from them says: Newcastle Intermediaries has launched a 10-year interest-only mortgage product to increase long-term borrowing options. 

The 10-year interest only fixed rate is available at 3.55% up to 80% LTV on house purchases and remortgages up to £1million.

The product comes with a £999 completion fee and the flexibility of 10% overpayments per annum. Also, Newcastle has also launched a 10-year repayment and a 7-year fix.

 



 

2 responses from the Newspage community

Yes, the Newcastle BS 10yr interest-only is likely the most competitive product in that market place; however, it's such a niche product I can't imagine a scenario where I'd be recommending that given the length of fix and the interest-only basis. Anyone with a loan size up to 80% LTV that's not repaying the capital should be questioning their repayment strategy.
Who can say where they'll be living in 10 years time with enough of a degree of certainty? Not many. And that's why super long term fixes are going to stay a niche product.