90% Mortgages in Feb 2010 from Newcastle
90% Mortgages From Newcastle
The Newcastle Building Society has become the latest lender to offer 90% mortgages to its customers. They are offering two types of product, a fixed rate deal and a tracker deal, aimed at the first-time buyer.
The fixed rate is at 5.95% for 2 years and then moves back to the lenders SVR which is currently 5.99%. The product carries a £499 completion fee and a £195 reservation fee.
The tracker rate is a 2 year deal set at 4.10% above the Bank of England base rate which is currently 0.5%. The rate is currently 4.6% and converts back to the lenders SVR after 2 years. This product also carries a £499 completion fee and a £195 reservation fee.
The amount that can be borrowed is based on 3.25 times a single salary or 3 times the joint salary of a couple. Overpayments are restricted – under £500 payments on top of the monthly payments are not classed as overpayments. Any one off payments of £500 or more to the mortgage account will incur the early repayment charge. These 90% mortgages are available both in branch and online.
Steve Urwin, senior sales and marketing executive of Newcastle Building Society, said: “Conditions in the mortgage market have been very difficult for sometime, and they have had a particular impact on the first-time buyer market, where numbers across the UK have fallen year-on-year by around four per cent.
“We know, however, there is still the demand throughout the UK from many people that want to buy their first home.
“With house prices beginning to recover and a lot of homes remaining affordable to many first-time buyers, we have created these new products to give them the opportunity to get onto the property ladder, while encouraging both responsible borrowing and lending practices.”
Out of these two 90% mortgages the tracker looks interesting but considering it is based at 4.10% above the base rate will it be such a good product when the base rate goes up, which it eventually will?
Santander introduces 90% mortgage - Feb 2010
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