Help to Buy  

Newcastle launches 95% LTV mortgage

Newcastle launches 95% LTV mortgage

Newcastle Intermediaries has launched a 95 per cent loan-to-value (LTV) mortgage with £1,000 cashback.

This is available to first-time buyers (FTBs), home movers, remortgagers and Help to Buy (HTB) customers.

The two-year fixed rate is at 4.09 per cent and comes with a free valuation and no arrangement fees.

It allows 10 per cent overpayments a year with the early repayment charge set at 2 per cent until 31 June 2019 and 1 per cent until 31 June 2020.

Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: "We are always looking at improvements to our mortgage products that keep pace with the changing needs of first-time buyers, remortgage customers and Help to Buy purchasers.

"We want to give borrowers the option of a mortgage available at 95 per cent LTV with no fees to pay and the bonus of increased cashback to help with the costs associated with buying their own home.

"We are hoping that positive take-up on this product will encourage roll out of an increased cashback facility over a wider range of our LTV products."

The deal comes as the first wave of Help to Buy customers are now due to start paying the interest on the equity part of the loan.

Mr Carruthers said the increased cashback could help towards remortgage legal costs and any redemption fees on the equity loan payable to the government.

Steven Sibley, director at Berkhamsted-based Highclere, said: "This product will be a big help for first-time buyers, home movers, remortgagers and Help to Buy customers alike. 

"With the constant threat of the Bank Of England increasing the base rate, the security of the fixed rate will provide valuable reassurance. 

"Also, the fact that this product is available up to 95 per cent LTV and offers a free valuation, no arrangement fee and a £1,000 cashback makes this an all round attractive proposition."

aamina.zafar@ft.com