Newcastle for Intermediaries has launched First Step, a new low-deposit mortgage proposition, boosting options for first-time buyers with smaller deposits looking to move quickly onto the property ladder.
First Step offers lending up to 98% LTV with a minimum cash deposit of just £5,000. The lender’s latest proposition offers a maximum loan of up to £350,000 and will initially launch with London and Country Mortgages, Connells Group and Mortgage Advice Bureau.
A five-year fixed rate is available at 5.25% and comes with a free standard valuation up to £550,000 and 10% overpayments per annum.
Francesco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “We know how hard it is for many first-time buyers to build a large deposit in today’s housing market. First Step has been designed to give people who have worked hard to save a cash deposit a realistic route into home ownership, while ensuring robust affordability and lending criteria. We’re pleased to bring this practical, intermediary-focused solution to market and to support brokers in finding the right outcomes for their clients.”
Sidney Wager, managing director at L&C Mortgages, added: “L&C Mortgages is delighted to partner with Newcastle Building Society in its launch of the First Step product, ahead of its full market release. We know that first-time buyers continue to face significant difficulty in building a big deposit to stand a chance of buying.
“This will allow L&C advisers to find a solution for more first-time buyers, who can afford to buy but may only have a smaller cash deposit. It’s a practical step towards broadening routes to homeownership, harnessing the value of advice to ensure positive outcomes for customers.”
