The building society has clarified that it is still accepting applications for owner-occupied interest-only loans, after a message was sent to brokers stating otherwise.
Newcastle Permanent Building Society Ltd (Newcastle Permanent) has confirmed to The Adviser that it is still able to accept applications for customers for owner-occupied (OO) interest-only (IO) loans, following a broker update being sent out stating the contrary.
Earlier this week, the building society issued a communication to some brokers that, effective immediately, it would “temporarily not be accepting applications for owner-occupied interest-only loans”.
However, the lender has since issued a follow-up update, confirming that it is still accepting OO IO applications.
It is believed that the initial message may have been sent in error.
A spokesperson from Newcastle Permanent told The Adviser: “We are accepting applications for customers for owner-occupied interest-only loans, and we are always open for business for our customers.
“As a responsible lender, we review every loan application on its merits.”
Newcastle Permanent’s OO IO loans start from 2.89 per cent (two and three-year premium plus package, fixed rate).
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.
Commercial property settlements continue to fall, with FAST’s l...
The investment house has acquired a major stake in Fifo Capital, ...
The three aggregators have officially joined Loan Market Group to...