Newcastle Building Society introduces Help to Buy mortgage options for self-employed people

Release Date: 09 April

Newcastle Building Society has introduced mortgages for those who are newly self-employed and seeking a Help to Buy mortgage.

The number of self-employed people continues to increase year on year, but many face difficulties when applying for a mortgage until they have traded for at least 3 years. As a commitment to making the mortgage application process easier for those recently self-employed (those who have been trading as self-employed for less than two years), Newcastle Building Society provides individual case assessment and requires either one year’s accounts, an SA3012 form, or a completed accountant’s certificate.

The Society’s two new Help to Buy mortgages are both two year fixed rate products at 75% LTV. 

The fee assisted two year fix at 2.55% (5.4% APR) comes with free valuation, £500 cashback and 10% overpayments per annum.  There is an early repayment charge of 2% until 31st May 2019 and 1% until 31st May 2020.

The second two year fixed rate available at 2.05% (5.4% APR) has an £800 completion fee, and £199 reservation fees payable up front. Overpayments of up to 10% per annum are permitted and there is an early repayment charge of 2% until 31st May 2019 and 1% until 31st May 2020.

Steve Carruthers, head of mortgage distribution at Newcastle Building Society, said: “We understand how self-employment works and our self-employed mortgage range aims to make buying a home and re-mortgaging much easier by applying common sense lending decisions that are based on individual circumstances.

“By introducing these Help to Buy options, we’re giving self-employed people more flexibility when applying for a mortgage, from first time buyers to next time buyers there’s an option for every situation.”

For full details or advice on the self-employed range and to speak to a friendly mortgage adviser, call Newcastle Building Society on 0345 606 4488 from Monday to Friday, 8am to 8pm and Saturday, 9am to 3pm.

 

Product information:

  •  2.55% Fixed Rate until 31st May 2020 followed by our Standard Variable Rate, currently 5.99%
  • The overall cost for comparison is 5.4% APR
  • No Reservation Fee
  • No Completion Fee
  • Maximum LTV 75%
  • Minimum Loan £10,000
  • Maximum Loan £600,000
  • Free Valuation (on properties up to and including £500,000)
  • £500 Cashback
  • 10% overpayments of balance per annum
  • 2% Early Repayment Charge until 31.05.2019
  • 1% Early Repayment Charge until 31.05.2020
  • If you borrowed £165,000 over 25 years, the cost for credit would be £137,737.31 meaning you repay a total of £302,737.31. This would be repaid by 27 monthly repayments of £744.38 and a further 273 monthly repayments of £1,034.85

Product information:

  •  2.05% Fixed Rate until 31st May 2020 followed by our Standard Variable Rate, currently 5.99%
  • The overall cost for comparison is 5.4% APR
  • £199 Reservation Fee (payable up front)
  • £800 Completion Fee
  • Maximum LTV 75%
  • Minimum Loan £10,000
  • Maximum Loan £600,000
  • 10% overpayments of balance per annum
  • 2% Early Repayment Charge until 31.05.2019
  • 1% Early Repayment Charge until 31.05.2020
  • If you borrowed £165,000 over 25 years, the cost for credit would be £136,986.90 meaning you repay a total of £301,986.90. This would be repaid by 27 monthly repayments of £706.79 and a further 273 monthly repayments of £1,035.09
  • These figures are based on the assumption that the completion fee has been added to the loan.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE