Newcastle Intermediaries revamps 95% LTV deals

The revamped range includes a fee assisted two-year fixed rate deal at 3.69 per cent, which is available at a maximum loan-to-value (LTV) of 95 per cent.

This comes with free valuation or the option of £500 cashback.

It also offers free legal fees for re-mortgage only.

The changes also include an early repayment charge of 2 per cent until the end of July 2019 and 1 per cent until the end of July 2020.

The free legal package includes all standard legal costs including Land Registry fees, Land Registry priority search, bankruptcy searches, as well as property searches such as local authority, water and drainage fees.

Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: "We are committed to supporting more borrowers onto the property ladder and I am pleased to announce the refresh of a number of mortgage rates available for a variety of borrowers.

"These products will help a wide range of borrowers including first-time and remortgaging borrowers. 

"With the refresh of this range, we are giving borrowers the option of £500 cashback or if you are remortgaging, free legal fees, allowing more flexibility whether you are taking the first step on the property ladder or simply reviewing your exiting deal."

Commenting on the changes, Martin Stewart, director at London Money, said: "High LTVs are always an attractive proposition for buyers - people always seem to think it is easier to get rich using other people's money.

"That said, at a time when house prices appear to be softening, the market hardening in favour of the buyer and headwinds abound for all of us I would strike a note of caution for those considering them.

"A 5 per cent deposit can take years to save up but disappear quickly in the scramble for an emergency exit.

"I would always advise consumers to tread carefully at higher LTVs and remind them that there is no law currently in place that guarantees house prices must always go up."

aamina.zafar@ft.com