The First Step product can be secured with a minimum cash deposit of £5,000, helping more buyers get onto the property ladder.
The deal has a maximum loan size of up to £350,000 and will launch with L&C Mortgages, Connells Group and Mortgage Advice Bureau (MAB) from September 2025.
The five-year fixed rate is priced from 5.25% and comes with a free standard valuation up to £550,000 and 10% overpayments per annum.
Francesco Di Pietro (pictured), head of intermediary mortgages at Newcastle Building Society, said: “We know how hard it is for many first-time buyers to build a large deposit in today’s housing market. First Step has been designed to give people who have worked hard to save a cash deposit a realistic route into homeownership, while ensuring robust affordability and lending criteria. We’re pleased to bring this practical, intermediary-focused solution to market and to support brokers in finding the right outcomes for their clients.”
Sidney Wager, managing director of L&C Mortgages, said: “L&C Mortgages is delighted to partner with Newcastle Building Society in its launch of the First Step product, ahead of its full market release. We know that first-time buyers continue to face significant difficulty in building a big deposit to stand a chance of buying.
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“This will allow L&C advisers to find a solution for more first-time buyers, who can afford to buy but may only have a smaller cash deposit. It’s a practical step towards broadening routes to homeownership, harnessing the value of advice to ensure positive outcomes for customers.”
