Mortgage offers within one-week reach
Newcastle Intermediaries has improved its time to offer to six days as well as updating its two and five-year fixed rate mortgage ranges.
The two-year rate can now be obtained from 1.99% LTV up to 80%, with the five-year LTV starting at 2.59% to 80%. Free valuation is also being offered by the Society for both products, as well as £250 cashback on the five-year fixed rate.
Commenting on the numerous benefits the products offer, was Steve Carruthers. The Head of Mortgage Distribution at Newcastle Intermediaries mentioned the improved customer service the change aims to achieve: “We’re further improving these two competitive mortgage products, which now offer cost saving advantages and the opportunity to fix at a competitive rate. Alongside this, our service investments reflect our commitment to saving brokers time and effort with a rapid six day turn around time to offer that will help them provide an even better service to their customers.”
Obtaining a mortgage offer more quickly and easily is appealing to consumers, especially when the process of buying a home can be so stressful. However, if the purchase is part of a chain, the faster mortgage deal may seem less tempting further down the transaction line.
A property chain involves sellers and buyers being linked, as each consumer is buying and selling from the other. The chain may consist of many consumers, each usually having an estate agent, surveyor, mortgage lender and legal firm attached.
Due to the nature of a chain however, if a single link misses a phone message or neglects to sign documentation, the whole chain may be delayed. Thus, if a mortgage is offered at a faster rate, it puts pressure on the rest of the chain to do the same.
A 2016 Which? survey indicated that around 13% of people had pulled out of a sale because the process was taking too long. Faster mortgage offers may seem appealing, but unless the slowest link in the chain can keep up, customers may pull out, causing the chain to collapse altogether.