THE Newcastle Building Society is reaping the benefits of innovation.

The UK's 14th largest society has made an excellent start to the year, recording profits after tax of £5.73m in the six months to June 30, due mainly to a range of mortgage and other products.

New features included a ten-year fixed rate mortgage deal at 5.99 per cent. The Newcastle also gives borrowers an annual month-long window in which they can redeem their mortgage without penalty if they find a better deal.

NewcastleNet, the society's Internet-based savings account, also continued to feature regularly in "best buy" tables and in March it won industry-wide recognition with the best use of new media in customer facing environments prize in the Financial Sector Technology Awards.

The society also launched an online insurance supermarket, which allows customers to receive quotes from ten different insurance companies. This service will be available in Newcastle's branches in the next 12 months.

The insurance supermarket sits alongside the Newcastle's online shopping mall, Avenue One, which allows customers to browse through a range of 30,000 products online at prices lower than the high street.

The society plans to add to these services by introducing a wealth portal, allowing customers to buy and sell shares and unit trusts online.

The new facilities will be available at both the society's branches and on its website, www.newcastle.co.uk

Chief executive Robert Hollinshead, said: "Bringing the benefits of technology to our customers has and will remain at the heart of our strategy. We will continue to exploit new technologies to improve customer service and to provide the benefits of innovative best buy products both of our online and branch-based customers."