Newcastle Building Society supports local first time buyers

Release Date: 22 August

The region’s largest building society is supporting local first time buyers by cutting rates on two 95% loan to value mortgages.

Newcastle Building Society has made the cut by up to 0.20% on their North East exclusive range which includes a two year fixed rate and a five year fixed rate mortgage.

The 2 year fixed rate at 3.39% (5.7% APR) comes with free valuation, £500 cashback and 10% overpayments per annum. There is an early repayment charge of 2% until 31st October 2019 and 1% until 31st October 2020.

The 5 year fixed rate at 3.70% (5.3%APR) also comes with a free valuation, £500 cashback and 10% overpayments per annum. There is an early repayment charge of 5% until 31st October 2019, 4% until 31st October 2020, 3% until 31st October 2021, 2% until 31st October 2022 and 1% until 31st October 2023.

Both mortgages are available with a max loan to value of 95%, meaning borrowers only need a 5% deposit to own their own home.

Steve Carruthers, head of mortgage distribution at Newcastle Building Society, said: “As the North East’s largest building society, we pride ourselves on helping local people onto the property ladder. Which is why we’re cutting rates on some of our North East exclusive 95% mortgages, helping local first time buyers own their own home.

“With house prices in the North East on average around £150,000*. With our 95% mortgage, borrowers only need a 5% deposit, which on this house price would be £7,500 making your house purchase achievable.”

The mortgages are effective in the following North East postcodes: NE, SR, DH, TD15, TD12, DL, TS, CA1– 11.

For full details or advice on the first time buyer 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:

  • 3.39% Fixed Rate until 31st October 2020 followed by our Standard Variable Rate, currently 5.99%
  • The overall cost for comparison is 5.7% APR
  • No Reservation Fee
  • No Completion Fee
  • Maximum LTV 95%
  • Minimum Loan £10,000
  • Maximum Loan £300,000
  • Free Valuation (on properties up to and including £500,000)
  • £500 Cashback
  • 10% overpayments of balance per annum
  • 2% Early Repayment Charge until 31.10.2019
  • 1% Early Repayment Charge until 31.10.2020
  • If you borrowed £150,000 over 35 years, the cost for credit would be £197,339.15 meaning you repay a total of £347,339.15. This would be repaid by 27 monthly repayments of £610.41 and a further 393 monthly repayments of £841.56.

Product information:

  • 3.70% Fixed Rate until 31st October 2023 followed by our Standard Variable Rate, currently 5.99%
  • The overall cost for comparison is 5.3% APR
  • No Reservation Fee
  • No Completion Fee
  • Maximum LTV 95%
  • Minimum Loan £10,000
  • Maximum Loan £300,000
  • Free Valuation (on properties up to and including £500,000)
  • £500 Cashback
  • 10% overpayments of balance per annum
  • 5% Early Repayment Charge until 31.10.2019
  • 4% Early Repayment Charge until 31.10.2020
  • 3% Early Repayment Charge until 31.10.2021
  • 2% Early Repayment Charge until 31.10.2022
  • 1% Early Repayment Charge until 31.10.2023
  • If you borrowed £150,000 over 35 years, the cost for credit would be £185,922.56 meaning you repay a total of £335,922.56. This would be repaid by 63 monthly repayments of £637.44 and a further 357monthly repayments of £828.12.

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

Newcastle Building Society Principal Office: Portland House, New Bridge Street, Newcastle upon Tyne, NE1 8AL. Newcastle Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Newcastle Building Society is entered in the Financial Services Register under number 156058. You can check this on the Financial Services Register or by contacting the Financial Conduct Authority on 0800 111 6768. Call 0345 734 4345 or visit us online www.newcastle.co.uk

* Average house price found on https://www.rightmove.co.uk/house-prices-in-North-East.html