The 98% LTV mortgage product initially launched with London & Country (L&C) Mortgages, Connells Group and Mortgage Advice Bureau (MAB) in September for borrowers with a minimum deposit of £5,000.
The mutual will lend up to £350,000.
First Step is open to first-time buyers with smaller deposits and Newcastle Building Society will offer a five-year fix with a rate of 5.25%. The product comes with a free standard valuation up to £550,000 and allows 10% overpayments every year.
Francesco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “We know how challenging it is for many first-time buyers to save large deposits. First Step gives those who have worked hard to save a small deposit a genuine chance of owning a home, offering up to 98% LTV with a competitive five-year fixed rate and straightforward eligibility checks.
“It’s a practical solution designed to help more people take that first step into homeownership and we are pleased to be able to expand distribution to the wider market.”
£2.5m paid to help broker clients benefit from greener homes
Sponsored by Halifax Intermediaries
Earlier this month, the mutual announced a refresh of its interest-only product transfer range.
