NewcastleBuilding Society Launches Exclusive New Mortgage Deal For North East’s First-Time Buyers

New mortgage products designed specifically to help first time buyers in the region get onto the housing ladder have been launched by Newcastle Building Society.

The deals will initially be available exclusively in the Newcastle’s 35 regional branches, where Newcastle’s qualified mortgage advisers are on hand to deliver expert guidance.

The new mortgage range, which has been set up to help people looking to buy their first home overcome the difficulties they currently face in gaining a mortgage, offers a maximum loan-to-value of 90% and includes the options of a two-year tracker at 4.60% or a two-year fixed rate at 5.95%.

Demand is expected to be strong for the Newcastle’s new mortgage products, especially at a time when the average price of a house in the region is almost 30% lower than the equivalent national figure.

Currently approximately only 8% of mortgage products in the marketplace have a maximum LTV of 90%.

New research* has found that, whilst nationally the average house price for a first time buyer is £133,794, in the North, the equivalent figure is just £95,869.

The statistics also found the north east has the most affordable housing available to first-time buyers, and that it has enjoyed the largest percentage rise between 2007 and 2009 in the number of local authority areas in which they are able to afford homes (up from 6% in 2007 to 94% in 2009).

The Newcastle has set the maximum 90% loan-to-value ratio for the new products to ensure that borrowers do not overstretch themselves, but to also place home ownership within reach of many who can build up a reasonable deposit.
The fixed rate at 5.95% ensures they can plan accurately for how much they will have to pay back each month over the next two years.

For these 90% LTV products, the Newcastle allows multiples of up to 3.25 times an individual’s annual salary, or three times the joint salary of a couple, which is used to confirm affordability for the loan. 

The base rate tracker version is also available at a rate of 4.10% above the Bank of England Base Rate.

These products are exclusively available to first-time buyers or to those looking to return to the property market, although there are limited tranche volumes.

Steve Urwin, Senior Sales and Marketing Executive at Newcastle Building Society says: “Conditions in the mortgage market have been very difficult for sometime, and they have had a particular impact on the first time buyer market, where numbers across the UK have fallen year-on-year by around four per cent.

“We know, however, there is still the demand in the north east from many people that want to buy their first home. With house prices beginning to recover and a lot of homes remaining affordable to many first-time buyers in the north east, we have created these new products to give them the opportunity to get onto the property ladder, while encouraging both responsible borrowing and lending practices.

“The terms and rates we’re offering compare extremely favourably with other products currently on the market without demanding the applicant take other products to qualify for the deal. By offering this opportunity exclusively through our heartland branches we provide real support for our members and their communities at a time when they need it most.”

For more information on Newcastle Building Society’s range of mortgage products, please call 0845 600 4367 or visit
*Source: Halifax First Time Buyers House Review 2009

First Time Buyer Fixed Rate Mortgage

  • 5.95% Fixed Rate until 31st March 2012
  • APR 6.1% (total charge for credit)
  • £499 Completion Fee
  • £195 Reservation Fee
  • Max LTV 90%
  • 3% of balance repaid if redeemed before 31st March 2012

Base Rate Tracker Mortgage

  • 4.10% above Bank Base Rate until 31st March 2012 (current rate pay rate 4.60%)
  • APR 6.4% (total charge for credit)
  • £499 Completion Fee
  • £195 Reservation Fee
  • Max LTV 90%
  • 3% of balance repaid if redeemed before 31st March 2012

For further information please contact:

Natalie Falkous
Group Corporate Communications Manager

Julian Christopher

Newcastle Building Society

Footprint Public Relations

0191 244 2024

07891 005034

Notes to Editors:

About Newcastle Building Society

Newcastle Building Society is the biggest building society based in the North East and one of the strongest mutual building societies in the country.  With assets under management of over £4.5bn we are certainly large enough to cope but small enough to care deeply about the needs of our members.  We are committed to providing a range of innovative and attractive products.

The Newcastle Building Society is committed to remaining mutual and by doing so we feel we are better placed to continue to provide our investors with the quality of service expected from one of the country’s strongest building societies.