Mortgages Help

• For what purposes are residential mortgages available?
• What is the maximum percentage of the purchase price that you would advance?
• How do you calculate how much I / we can borrow?
• What information is required to support a mortgage application?
• Do you have a minimum purchase price for property?
• Do I have to pay a "valuation fee"?
• Do I have to pay a fee for a further advance?
• What is the maximum term over which I can take my mortgage?
• If I pay by Direct Debit, when will my first mortgage payment become due, following completion?
• Why do the Society require a "consent to mortgage" form to be signed by anyone over 17 years of age, who will be residing in the mortgaged property but not party to the mortgage?
• What is Daily Interest?
• What Is a Guarantor Mortgage?

For what purposes are residential mortgages available?

Residential mortgages are available for the following purposes:

• Purchase of a residential property
• Remortgage of an existing advance
• Capital raising
• Construction of a property which the applicant will occupy on completion

What is the maximum percentage of the purchase price that you would advance?

The maximum loan we will advance is as follows:

• For home purchase and re-mortgages, 95% of the price of the valuation of the property, whichever is the lower. For certain products the maximum loan may be restricted. There is also a restriction on properties worth more than £250,000.
• Re-mortgage for capital raising purposes are not permitted on mortgages above 75% loan to value. Capital raising is described as anything other than the replacement of a home purchase loan or a loan for the purposes of home improvement. In certain circumstances the loan to value can be increased to 85%.
• Second homes / holiday homes must be strictly for the sole use of the borrower and dependent family members and must not be let. The maximum loan to value for such properties is 75% and applicants financial status must be sufficient to cover both loans (i.e. mortgage on first property plus new mortgage).
• For the construction of a residential property, for owner occupation, 85% of cost or value of the property, whichever is the lower. The maximum for the purchase of land is 75%.

All applicants must find their deposit from their own resources - it cannot be borrowed from another party.

How do you calculate how much I / we can borrow?

The maximum loan we will advance is subject to the following multiples:

The details above are subject to the applicant being a minimum of 25 years old. If the applicant is under 25 years of age, maximum over 75% is 3x. Regular monthly commitments will be deducted from income.

What information is required to support a mortgage application?

The following information is normally required to support a mortgage application:

• For an employed applicant, the last three months pay slips and most recent P60. Satisfactory references covering the last two years will also be sought. Applicants must be at least 21 years of age.
• For self employed applicants, the last two years audited / certified accounts, plus a projection for the current financial year. Accounts must be audited / certified by a chartered or certified accountant. Applicants must be at least 23 years of age.
• Self employed applicants applying for a loan of more than 50% of the property value must also provide the last six months' business statements.
• Proof of payment for the preceding twelve months is required where the applicant has had a previous mortgage or has been a tenant.
• For all forms of additional income which is being taken into account, documentary evidence will be required.
• In the event that the applicants are not registered on the voters roll, they must supply proof of residence. Any Utility bill, Council Tax bill, Bank Statements or mortgage statements are acceptable, providing the original documents are supplied.
• Your Solicitor will be required to confirm identity by one of the following documents. A credit card, passport or driving license are all acceptable, providing the original documents are supplied. Proof of Identity is not required for existing Newcastle Building Society borrowers.

Do you have a minimum purchase price for property?

Yes - All properties must have a minimum purchase price and / or valuation of £60,000 whichever is lower.

Do I have to pay a "valuation fee"?

You must pay for a valuation fee. Full details of fees are available here. Alternative fees will be charged for special schemes. Please refer to product literature for details.

Do I have to pay a fee for a further advance?

The Society charges standard fees for Further advances which are determined by the valuation of the property. Full details of fees are available here.

What is the maximum term over which I can take my mortgage?

The normal term for a mortgage is 25 years, however the Society may consider a term up to 35 years. For further details please contact us.

If I pay by Direct Debit, when will my first mortgage payment become due, following completion?

Should completion of your mortgage take place prior to the 15^th of the month, the Society will collect your monthly payment on the 1^st of the following month. If completion takes place after the 15^th, your first payment will be collected on the 15^th of the following month and will then continue to be collected on the 1^st of each month thereafter.

Why do the Society require a "consent to mortgage" form to be signed by anyone over 17 years of age, who will be residing in the mortgaged property but not party to the mortgage?

Under common law, any occupant over 17 years of age has rights to remain resident should for any reason it became necessary for the property to be vacated.

As mortgagor, you waive these rights by securing a loan on the said property. However any persons resident at the time of the mortgage inception, who are not party to the said mortgage, still hold these rights. By signing a consent to mortgage form they are waiving this right, should for any reason the Society need to take the property into possession.

What is Daily Interest?

Interest is calculated on the balance of the account at the end of each day. Interest is then accrued daily and added to the account balance on the last day of every month. This means every cleared payment that is made reduces the mortgage balance and interest is recalculated on the reduced balance. Full written quotations available on request.

What Is a Guarantor Mortgage?

The Guarantor Mortgage is a simple solution designed to cater for young professionals who would like to take out a mortgage on a property, which, because of its value and mortgage repayments they are unable to cover, based on their own income and / or assets.

The Guarantor Mortgage allows a close relative of the borrowing applicant, usually a parent, to provide assistance to the borrower by providing a guarantee for the shortfall, or proportion of the loan which cannot be adequately covered by the borrower's earnings.

A first charge will be required as security. All mortgages are subject to suitable security status and valuation and are not available to persons under 21 years of age. APRs are typical and variable.