Newcastle Intermediaries launches £1,000 cashback to 95% range
Newcastle Intermediaries is introducing a 95% LTV mortgage with £1,000 cashback, available to first-time buyers, home movers, remortgagers and Help to Buy customers.
It’s five years since the introduction of Help to Buy, which was aimed at helping first-time buyers onto the property ladder through the provision of a 5-year interest free government equity loan on a portion of their mortgage.
The first wave of these customers are now due to start paying the interest on the equity part of the loan.
Jonathon Burridge, sales manager at The Mortgage Broker, said: “As it matures we need more lenders offering products for these customers. It’s great seeing lenders come in serving the Help to Buy remortgage market.”
There are fewer remortgage options for Help to Buy customers as the current market is limited. Provided they have enough equity in their home these customers can add the equity loan to their current mortgage balance at 95% LTV and take advantage of £1,000 cashback with Newcastle Intermediaries.
The increased cashback could help towards remortgage legal costs and any redemption fees on the equity loan payable to the government.
Danny Belton, head of lender relationships, Legal & General Mortgage Club, said: “The Newcastle BS product provides a great opportunity for customers looking to exit the Help to Buy scheme, with the £1000 cashback helping towards costs.
“However, there is still a shortage of lenders that provide a like for like remortgage option for those customers wishing to continue with the Help to Buy scheme, and even fewer lenders offering the opportunity for customers to increase their share of the property.”
The £1,000 cashback, 2-year fix at 4.09% (5.8% APR) has a max LTV of 95%, free valuation, no arrangement fees, and 10% overpayments per annum, with an early repayment charge of 2% until 31.07.2019 and 1% until 31.07.2020.
Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: “We’re 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% LTV with no fees to pay and the bonus of increased cashback to help with the costs associated with buying their own home.
“We’re 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.”