Newcastles launches 90 per cent mortgages
The new mortgage range has been set up to help people overcome the difficulties they currently face in gaining a mortgage to purchase property and is particularly ideal for first time buyers.
The products offer a maximum loan-to-value of 90% and include the options of a two-year tracker at 4.60% or a two-year fixed rate at 5.95%.
For these 90% LTV products, the Newcastle allows multiples of up to 3.25 times an individual’s annual salary, or three times the joint salary of a couple. These limits are specifically set to support affordability for the loan.
A base rate tracker version is also available at a rate of 4.10% above the Bank of England Base Rate.
Steve Urwin, senior sales and marketing executive at Newcastle Building Society said: “Conditions in the mortgage market have been very difficult for sometime, and they have had a particular impact on the first time buyer market, where numbers across the UK have fallen year-on-year by around 4%.
“We know, however, there is still the demand throughout the UK from many people that want to buy their first home. With house prices beginning to recover and a lot of homes remaining affordable to many first-time buyers, we have created these new products to give them the opportunity to get onto the property ladder, while encouraging both responsible borrowing and lending practices.”
Both moneysupermarket and Defaqto are showing this product in Best Buy tables and there is a limited amount of funding available. Both products are available for purchases only.
The deals will be available across the Newcastle’s 36 branches and through its Direct Mortgage Operations Centre.