The change means that potential borrowers for new-build flats can secure a mortgage with a 10% deposit, which improves the options for homebuyers.
The firm said the change would “provide further support for the housebuilding sector by broadening access to the new-build home market for younger aspiring homeowners and those borrowers with smaller deposits”.
It comes after Newcastle Building Society upped the maximum LTV for new-build houses to 95% and improved its residential stress rate for mortgages with terms up to five years.
Mark Pender, director at the Mortgage Advice Bureau (MAB) New Homes, said: “This and other recent policy changes introduced by Newcastle Building Society represent a positive development within the new-build market. By enhancing accessibility to new-build flats across the UK with lower deposit requirements, they are creating greater opportunities and flexibility for our clients.
“This move reflects the lender’s continued commitment to supporting key segments of the housing sector, which we are actively encouraging across the lending community.”
How to get your first-time buyer clients mortgage ready
Sponsored by Halifax Intermediaries
Franco Di Pietro (pictured), head of intermediary mortgages at Newcastle Building Society said: “By raising our LTV on new-build flats to 90% and having already extended up to 95% on new build houses earlier this year, we’re reducing the deposit barrier that many borrowers face, while broadening access to the modern, energy-efficient homes our borrowers want.
“We’ll continue innovating our products to ensure we meet the challenge of affordability, so that more aspiring homebuyers or people looking to make their next move can do so with confidence.”
