Newcastle expands affordability boost offering for new-build buyers
Newcastle for Intermediaries has expanded its affordability boost proposition to include eligible new-build purchase applications up to 95% loan to value (LTV).
The change applies to eligible first-time buyers, homemovers and existing customers purchasing a new-build property.
The affordability boost allows customers who choose a qualifying longer-term fixed rate mortgage to be assessed using criteria linked to the longer-term payment certainty offered by the product. Newcastle for Intermediaries said extending the proposition to 95% LTV new-build purchases is intended to help borrowers who may face affordability constraints or have smaller deposits.
The lender said the move comes as affordability remains a challenge for some prospective new-build buyers, citing factors including higher interest rates, the end of the Help to Buy scheme, inflationary pressures on house prices and difficulties saving for a deposit.
Michelle Ash (pictured), national account manager at Newcastle Building Society, said: “For many customers, affordability is still one of the biggest hurdles to getting on the property ladder or moving home, especially when buying a new build. Even when they’re financially ready to buy, higher rates and deposit requirements can make it difficult to access the borrowing they need.
“By extending affordability boost to eligible new-build purchases up to 95% LTV, we’re giving brokers another way to help suitable clients achieve their homeownership goals.
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“Alongside options such as joint mortgage sole proprietor (JMSP) for new-build purchases, this latest enhancement broadens the support available to customers who are constrained by affordability or deposit size, while still offering the longer-term payment certainty that many borrowers value.”
