Newcastle for Intermediaries has extended its Affordability Boost proposition to eligible new-build purchases at up to 95% loan-to-value (LTV).
The change applies to eligible first-time buyers, home movers and existing customers purchasing a newly built property.
Affordability Boost allows borrowers choosing a qualifying longer-term fixed-rate mortgage to be assessed in line with the greater payment certainty offered by the product.
Newcastle said the higher LTV limit could help borrowers who are able to buy but remain constrained by affordability requirements or the size of their deposit.
The lender introduced the change as prospective new-build buyers continue to face higher borrowing costs, property price pressures and the loss of support previously provided by the Help to Buy scheme.
Michelle Ash, national account manager at Newcastle Building Society, said: “For many customers, affordability is still one of the biggest hurdles to getting on the property ladder or moving home, especially when buying a new build.
“Even when they’re financially ready to buy, higher rates and deposit requirements can make it difficult to access the borrowing they need.
“By extending Affordability Boost to eligible new build purchases up to 95% LTV, we’re giving brokers another way to help suitable clients achieve their home ownership goals.
“Alongside options such as Joint Mortgage Sole Proprietor (JMSP) for new build purchases, this latest enhancement broadens the support available to customers who are constrained by affordability or deposit size, while still offering the longer-term payment certainty that many borrowers value.”
Affordability Boost does not alter Newcastle’s lending policy, underwriting standards or income multiple limits. It is not available for further advances.
