Newcastle Building Society has launched an offset mortgage available exclusively through the packager Praxis it was announced today.
The offset mortgage product is designed as a credit repair tool for the near prime market and is available to customers with unlimited defaults but no mortgage or rent arrears and no CCJs or IVAs in the last 12 months.
Commenting on the launch, Jon O’Brien, head of intermediary lending at Newcastle Building Society, says: “Our Offset mortgage is extremely popular and has been targeted at the prime market previously, however this new product will allow near prime borrowers to benefit from all the advantages an Offset account can provide.
“After two years of continuous mortgage payments, once their credit record is repaired, the borrower is automatically reverted to a prime rate product, without the need to remortgage.”
The offset product offers an initital interest rate of 1% above the Bank of England base rate, which reverts to +0.5% after two years of continuous payment.
Other features include 85% LTV, a 1% arrangement fee and a maximum loan of £500,000.
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