The two loans include all standard legal costs, including Land Registry fees, a Land Registry priority search, bankruptcy searches, property searches (such as local authority, water and drainage fees) and VAT.
The products are also free from valuation and product fees.
Both All in One products in the help-to-buy range are fixed for two years. The first is available at 2.09 per cent up to 60 per cent loan to value, while the second is available at 2.15 per cent up to 75 per cent LTV.
The existing range has been refreshed with rate reductions. Highlights include a 0.5 of a percentage point reduction of five-year fixes at up to 60 per cent to 2.29 per cent. The deal comes with no product fee, a free standard valuation and £300 cash back.
News of the product launches and refreshed range came two weeks after the lender announced rate reductions on several mortgages available exclusively for self-employed borrowers.
Newcastle Intermediaries offers help-to-buy products through a selection of key partners: Sesame, Openwork, L&G, Mortgage Advice Bureau, Intrinsic, First Complete, Pink Home Loans, The Mortgage Alliance, Premier Mortgage Services, SimplyBiz Mortgages, Brilliant Solutions and Tenet.
Provider view
Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: “Since entering the help-to-buy market, we’ve been working hard to enhance our offering to our broker partners. The introduction of a dedicated help-to-buy phone line and priority processing, as well as dedicated help-to-buy case ownership, helps brokers support home buyers using the scheme.
“Our All in One products, which offer more choice and help to ease the costs of purchasing a home, have also been added to our help-to-buy range – another example of how Newcastle Intermediaries is committed to supporting first-time buyers.”
Adviser view
Ciaran Scullion, financial adviser at From Acorns Financial Planning, based in Northern Ireland, said: “In my experience, most first-time borrowers like anything that is free and will gravitate to products that cover a number of costs associated with purchasing a house. Most are willing to take on a higher rate of interest for the convenience factor of having a number of costs ticked off. I suppose it all comes down to the conversation with the client. As advisers, we are able to source mortgages based on the total cost to the borrower so that we can identify the most competitive product.
“I think I’ve only brokered one help-to-buy mortgage because there are not many people that fit the bill here in Northern Ireland. The value of properties here are much lower than those in places like London.”
Charges
The aforementioned products come with no product fees.
Verdict
The mortgage guarantee of the help-to-buy scheme may have come to an end last year, but it would appear that lenders have taken it upon themselves to maintain the spirit of the initiative.
'All in One'-style products should be commended for convenience. However, more often than not, it is more economical to opt for conventional loans for the sake of a lower rate of interest. Here, the rates of interest on the two launches are steep. There are five-year fixes currently on the market offering the same rates of interest to borrowers at higher LTV levels.
