The maximum purchase price for the scheme has been increased from £330,000 to £600,000 to reflect the “national scope of the scheme”.
Its two-year fixed rate has fallen by 0.71 per cent to 2.79 per cent, and its five-year fixed rate has been cut by 0.56 per cent to 3.19 per cent.
There are no product fees, and both come with a free standard valuation for properties up to £500,000 and £500 cashback.
Early repayment charges (ERC) of two per cent and then one per cent apply to its two-year fixed rate product, and the five-year fixed rate ERCs start at five per cent and then reduce by one per cent every year.
Franco Di Pietro (pictured), head of intermediary mortgages at Newcastle Building Society, said: “Deposit Unlock is true innovation and gives low deposit buyers a great option on new builds. As the first lender to bring the scheme to market and roll out nationally, it means we’re also the first to respond to broker feedback, refining the proposition to make it an even more attractive option for customers and broaden access to the product range across the country.”
The mortgage indemnity scheme was developed by the Home Builders Federation and insurance broker Gallagher Re. It helps borrowers secure a new-build property worth up to £600,000 with a deposit of five per cent.
The lender was the first to sign up and launch 95 per cent loan to value (LTV) products for the scheme, initially launching a two-year fixed rate at 3.5 per cent and a five-year fixed rate of 3.95 per cent.
