Newcastle Intermediaries has added several products to its portfolio of Joint Mortgage Sole Proprietor (JMSP) products, and increased maximum loan-to-value (LTV) on the range from 80% to 95%.
This follows the lenders’ re-entry into the residential high LTV market, extending its support for low-deposit borrowers.
The JMSP range enables family members to help relatives own their own home, allowing them to apply for a mortgage using the supporting income of a family member.
Mortgage affordability is calculated using income from both the occupying and non-occupying borrower.
Although the mortgage will be in joint names, the occupying borrower will own the property and will be the sole name on the title deeds.
The JMSP range includes a 5-year fixed rate product at 3.99%. (4.0% APRC).
Early repayment charges apply at 5% until 31 December 2022, 4% until 31 December 2023, 3% until 31 December 2024, 2% until 31 December 2025 and 1% until 31 December 2026.
A 2-year fix is also available at 3.90% (4.0% APRC), with early repayment charges of 2% until 31 December 2022 and 1% until 31 December 2023.
All fixed-rate products in the JMSP range come with a free standard valuation on properties of up to £500,000 and allow 10% overpayments per annum for borrowers who want the flexibility to make lump sum overpayments in addition to the £499 overpayments already permitted.
John Truswell, head of intermediary mortgages at Newcastle Building Society said: “We know not all borrowers are the same and some would benefit from a different way of thinking when it comes to affordability. It’s up to us to help provide those options and JMSP is an innovative product which many brokers have accessed enthusiastically over the past 12 months. I’m pleased that by increasing the maximum LTV to 95% we’re extending support to include those borrowers who can rely on that family support but don’t have access to big deposits.”