"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."
The two-year fixed rate is available at 4.09% with 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.
Newcastle Intermediaries says the product launch coincides with the fifth anniversary of the Help to Buy launch, with the first wave of these customers now due to start paying the interest on the equity part of their loan.
The lender has raised concerns that there are fewer remortgage options for Help to Buy customers "as the current market is limited" and hopes its increased cashback will help towards remortgage legal costs and any redemption fees on the equity loan payable to the Government.
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.”
