Newcastle re-enters 95% LTV market with fixes for FTBs
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Stephen Marks, Chance for first-timers
Newcastle Building Society has launched into 95% LTV lending for the first time since the start of the financial crisis.
The lender is introducing two 95% LTV products, which are available to brokers through Legal & General’s distribution group, Nouveau.
It is offering a two-year fix at 5.95% with an £800 completion fee and £195 reservation fee, and a fee-free version of the same deal at a rate of 6.25%.
Both products have a maximum loan size of £250,000.
Steven Marks, intermediary services executive at the Newcastle, says: “First-time buyers are key to keeping the housing market mobile, but the big hurdle for them is to obtain a mortgage deal that suits their needs with a smaller deposit requirement.
“Our two products aim to give those borrowers a chance to get on to the ladder sooner rather than later.”
The society previously lent up to a maximum LTV of 90% and says it has limited tranches available for the two 95% LTV deals.
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