The mutual will now offer three-year fixes at 95 per cent loan to value (LTV) with a rate of 3.17 per cent for the £999 fee paying option, and 3.57 per cent with no fee.
Newcastle Building Society was the first lender to offer products through the Deposit Unlock scheme, a mortgage indemnity scheme developed and launched in partnership with the Home Builders Federation and insurance brokers Gallagher Re.
This was to help bring high LTV lending back to new-build properties.
It was initially only available on a few new-build plots through a small number of builders, and has now increased to 19 developers with sites across the UK.
Some 70 per cent of applications to the mutual under the scheme have been made by first-time buyers at the maximum LTV of 95 per cent.
Newcastle BS has also completed on almost half of the purchases made through the First Homes scheme, which was also launched last year as an initiative to provide homes for first-time buyers at a minimum discount of 30 per cent.
Stuart Miller (pictured), chief customer officer at Newcastle Building Society said: “I’m delighted that we have been able to help people achieve their dreams of home ownership through Deposit Unlock – that’s thanks to the hard work of everyone involved in the scheme, not least our intermediary partners.
“It’s even more rewarding to know that it’s first-time buyers, particularly, who are benefiting from the scheme and shows how this product innovation is making a real difference.”
He added: “The cost-of-living squeeze makes it even harder for first-time buyers and low deposit borrowers to get on and up the property ladder, demonstrating the importance of collaborative innovation in the mortgage industry. As the leading provider of both Deposit Unlock and First Homes mortgages, we’re seeing consistent interest in both schemes.
“That’s even before Help to Buy comes to an end next year, at which point these initiatives will become even more critical for first-time buyers in an already challenging market.”
