Newcastle tempts first timers

31 March 2004
Newcastle Building Society has launched two new mortgage schemes in a bid to attract customers in the current competitive mortgage sector.

The first is a two-year fixed rate mortgage scheme which it hopes will entice customers with its sense of security.

The "Maximum LTV" scheme is set at 4.44 per cent until May 31st 2006 and aimed at those that want to keep payments lower in the early years.

Newcastle's chief executive, Robert Hollinshead, said: "After the recent interest rate increases by the Bank of England we understand that many borrowers are looking for the security of a fixed rate deal, particularly in the first few years of the mortgage when they may want to benefit from reduced repayments, and be able to budget with certainty."

The building society is also launching a two-year, discounted rate scheme designed to help struggling first time buyers.

It offers a 2-year discount rate 2.24 per cent below its standard variable rate until May 31st 2006. With a current rate of 3.80% this scheme may be appealing to borrowers who are looking to reduce payments in the early years.