First applicants accepted for First Homes Scheme and target of 1,500 homes revealed

First applicants accepted for First Homes Scheme and target of 1,500 homes revealed

 

The scheme, which was launched in June this year with seven lenders signing up, awards a minimum of a 30 per cent discount on market price for first-time buyers and key workers to help them get on the property ladder.

These include Chorley Building Society, Darlington Building Society, Halifax, Leeds Building Society, Mansfield Building Society, Nationwide Building Society and Newcastle Building Society. All are offering 95 per cent loan to value mortgages for the scheme.

The key workers who have signed up to the scheme are from Bolsover in Derbyshire, First Homes is currently in its pilot phase. There are sites in Bolsover, Cannock and Newton Aycliffe are among the first to put homes on the market.

According to an update from the Department for Levelling Up, Housing and Communities, around 1,500 homes will now be built over 100 locations across England by March 2023 following successful bidding by housebuilders.

It comes after Eastleigh Borough Council confirmed plans to deliver 200 First Homes in the borough.

The government has also estimated that around 10,000 First Homes will be delivered across the country by 2027 and 2028.

The housing minister Christopher Pincher said: “This scheme is putting local people first and creating opportunities for young people and families to feel the sense of pride that comes with homeownership.

“We are determined to help more people on to the housing ladder and are providing significant funding to regenerate derelict land, deliver new homes and create prosperous local communities across the country.”

Stuart Miller, chief customer officer at Newcastle Building Society, said that it had seen “significant interest from customers and brokers” in its First Homes products due to the significant discount on the purchase prices, competitive interest rates and low deposit requirements.

He said: “We understand how big a challenge it is to get a foot on the property ladder with rising house prices and limited housing supply which is why we are such big supporters of this scheme and other innovative solutions such as Deposit Unlock where we were the first lender to offer mortgages under the scheme.

“We fully expect that demand for First Homes properties will exceed supply even as the scheme expands and would therefore encourage more innovation from lenders and further government support to help people achieve their dream of home ownership.”

Deposit Unlock broadens reach as Nationwide joins scheme

Deposit Unlock broadens reach as Nationwide joins scheme

 

The scheme, which launched earlier this year, allows new build buyers to purchase property with a five per cent deposit. It was developed by Home Builders Federation (HBF) and global reinsurance broker Gallagher Re.

It will now be available on developments across England, Scotland and Wales and is open to HBF and Homes for Scotland members.

Nationwide will offer a product for first-time buyers and second steppers up to £750,000. Borrowers using Deposit Unlock will be able to access the society’s 95 per cent LTV mortgages, which start from 2.62 per cent.

Around 17 builders are signed up to the scheme, including Barratt, Bellway, Bewley, Bloor Homes, Countryside Properties, Crest Nicholson, Croudace, Davidson Group, Fairview, Hill, Keepmoat, Miller, Persimmon, Redrow, Taylor Wimpey, Thakeham and Vistry. More builders will be added in the coming weeks.

Newcastle Building Society, which was the first lender to sign up to the scheme and offer the product nationally following a successful regional trail in the north-east, has also had the first completions under the scheme.

More lenders are expected to join in the new year, according to Deposit Unlock.

The scheme will open up the new build market to more borrowers who cannot use the Bank of Mum and Dad and will soften the blow of the withdrawal of the Help to Buy equity loan scheme.

Stewart Baseley, executive chairman of HBF, said: “The industry has worked hard to develop a sustainable solution that will help more prospective buyers onto the housing ladder, maintain demand and so enable builders deliver more desperately needed homes.

“Help to Buy has played a significant role in supporting increases in housing supply in recent years and has turned home ownership dreams into reality for hundreds of thousands of households. However, with the new Help to Buy scheme now less accessible in some regional markets including many parts of northern England, and with the programme closing in 2023 a new option was required.”

He added that the launch was “testament to the foresight and investment” made by 17 of its members.

He said: “We are also grateful for the commitment shown by our two launch lender partners and look forward to welcoming others in the coming months.”

Andy Dean, head of new build at Nationwide Building Society, said: “Raising a deposit continues to remain one of the biggest challenges facing those looking to move into their first home or on to their next. That is why we are pleased to be supporting Deposit Unlock and it’s great to see that it is now being rolled out nationally, providing a real boost to the new build sector.

“Supply of new housing also remains key to supporting first-time buyers and second steppers. Given the current strong appetite for new build properties, the Deposit Unlock scheme is particularly timely, especially given the forthcoming end of the Help to Buy Equity Loan scheme.”

Stuart Miller, chief customer officer at Newcastle Building Society, said: “Deposit Unlock is a true innovation and great example of collaboration across the industry to help more people achieve the dream of home ownership.

“That ambition is now paying dividends as we’re seeing the first completions and I take a real sense of pride in the fact that families are now living in homes purchased through Deposit Unlock. Helping more people get on and up the property ladder is a key element of our purpose so I’m delighted that we were the trailblazers for this scheme.”

Newcastle BS completes on first Deposit Unlock scheme purchases

Newcastle BS completes on first Deposit Unlock scheme purchases

 

The Deposit Unlock mortgage indemnity scheme was developed by the Homes Builders Federation and global reinsurance broker Gallagher Re to provide low deposit borrowers greater access to five per cent deposit mortgages on new-build properties.

The first purchases completed in November include a property in North Tyneside introduced by Midlands-based adviser New Homes Mortgage Services in Cannock.

 

Successful pilot leads to national roll out

After a successful regional pilot with selected developers, Newcastle Building Society led the national roll out of Deposit Unlock in September and a further expansion in the number of developers involved in the scheme is expected later this year.

Stuart Miller, chief customer officer at Newcastle Building Society, said: “We’re thrilled that the first completions under Deposit Unlock have taken place. They mark a significant milestone for all the parties involved who have worked so hard on the scheme since it was first conceived.

“The fact that families are now living in homes purchased through Deposit Unlock is cause for celebration and I’m so proud that we’ve been at the forefront of a truly innovative scheme to support low deposit borrowers achieve that dream of owning their own home.”

Maximum purchase price increase

In September, the lender enhanced its Deposit Unlock offering to reflect the national scope of the scheme by reducing rates and increasing the maximum purchase price for purchase from £330,000 to £600,000.

Anthony Dixon, mortgage and protection advisor at New Homes Mortgage Services in Cannock, said: “The Deposit Unlock scheme is going to be beneficial for many applicants because this helps them get on the ladder with a five per cent deposit, especially since the help to buy price caps have been introduced.

“Without this initiative, my clients would have needed to raise another five per cent to be able to purchase with this new build property so it was a great option for them.”

Steven Rance, managing partner of mortgage indemnity reinsurance at Gallagher Re, said: “We are delighted Newcastle Building Society is now welcoming its first families into new build properties purchased under the scheme.

“Deposit Unlock is available to all UK mortgage lenders, and to all house builders, no matter what their size. So it’s ability to fill a critical funding gap, with government interventions like help to buy being phased out, and overcome a genuine social challenge many families face, is huge.”

Newcastle BS cuts Deposit Unlock rates and ups maximum value

Newcastle BS cuts Deposit Unlock rates and ups maximum value

 

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.

Newcastle BS cuts 95 per cent LTV rates

Newcastle BS cuts 95 per cent LTV rates

 

Its two-year fixed rate has fallen by 0.3 per cent to 2.79 per cent. The product comes with early repayment charge (ERC) of two per cent until 28 February 2023 and one per cent until 29 February 2023.

Its five-year fixed rate has gone down by 0.29 per cent to 3.19 per cent. It has early repayment charges of five per cent, which reduced by one per cent a year.

They come with no product fees and are subject to a free standard valuation up to £500,000 and £500 cashback.

Overpayments of 10 per cent are permitted in addition to £499 regular monthly overpayments.

Franco Di Pietro (pictured), head of intermediary mortgages, said: “We’re always listening to broker feedback and looking for ways to improve our product and proposition offer.

“We’re especially keen to support first time buyers and low-deposit borrowers so I’m confident these changes, including the removal of reservation fees, will give brokers and their clients a great range of options.”

The lender re-entered the 95 per cent LTV space in June, having last offered the products in March last year.

It has since cut the rates in this range by up to 0.25 per cent in May, 0.24 per cent in August and 0.26 per cent in September.

Newcastle BS slashes rates at 95 per cent LTV

Newcastle BS slashes rates at 95 per cent LTV

 

The mutual has reduced its two-year fixed rate from 3.35 per cent to 3.09 per cent. It has no product fees, free standard valuation for properties up to £500,000 and £500 in cashback.

Its other two-year fixed rate, which comes with a £499 product fee on completion, has fallen from 3.25 per cent to 2.99 per cent.

Both products have early repayment charges of two per cent until 31st January 2023, which falls to one per cent until 31 January 2024. Borrowers are also allowed to make 10 per cent overpayments.

Newcastle’s intermediary mortgages head Franco Di Pietro (pictured) said: “We’re keeping our higher LTV products competitive by refreshing the range and looking for new ways to support brokers and their clients.

“As well as first-time buyers, the products are also available for home movers and customers looking to remortgage with us, who will all benefit from our wider offer, leading service levels and bespoke underwriting approach.”

The lender re-entered the 95 per cent LTV space in June, having last offered the products in March last year. This includes a two-year fixed rate and five-year fixed rate deals at 3.8 per cent.

It went on to cut select 95 per cent LTV rates in May by up to 0.25 per cent, and by 0.24 per cent in August.

Newcastle Intermediaries expands large loan product range

Newcastle Intermediaries expands large loan product range

 

A pair of discounted variable rate products have been added to the range and are available up to 65 per cent loan to value (LTV) for loans between £1.5m and £2m. The range allows enhanced income multiples of up to 5.5.

The two-year discounted rate product is available at 2.25 per cent, representing a discount of 1.71 per cent from the lender’s standard variable rate (SVR) of 3.96 per cent. It comes with free valuation and allows 10 per cent overpayments per annum in addition to the £499 regular monthly overpayment already permitted.

A one per cent early repayment charge (ERC) applies over the term.

Alternatively, a five-year discounted rate product is available at 2.65 per cent – a 1.31 per cent discount on the lender’s SVR, with no ERCs applicable. A fee of £1,999 is payable on both new products.

Franco Di Pietro (pictured) head of intermediary mortgages at Newcastle Building Society, said: “We recently moved back into the large loan market with a wide range of products, realising our commitment to do more to support brokers and their higher earning clients.

“After listening to broker feedback we’re pleased to extend that range even further, increasing the maximum loan amount and introducing some new 65 per cent LTV products to give borrowers even more choice.”

Newcastle Intermediaries re-entered the large loan market in July after exiting in April 2020 due to the pandemic.

Newcastle BS adds remortgage deal to Help to Buy range

Newcastle BS adds remortgage deal to Help to Buy range

 

The product is exclusive to the lender and is available on a two-year fixed rate at 3.55 per cent up to 95 per cent loan to value (LTV). It also comes with £1,000 cashback, no product fees and free standard valuation.

The cashback is designed to help with the costs of repaying the equity loan, according to the lender.

Borrowers can also elect to take out a two-year fixed rate at 2.19 per cent or a five-year fixed rate at 2.49 per cent up 75 per cent LTV, with a maximum loan of £450,000 although regional caps apply.

Both the above products also come with no product fees and free standard valuation, and all the products permit 10 per cent overpayments per year, as well as £499 a month.

The lender has extended the end dates of its Help to Buy range to January 2025 and January 2027. The previous end date was September 2023 and 2026.

Newcastle Building Society’s head of intermediary mortgages Franco Di Pietro said: “We’re delighted to introduce new products to our Help to Buy range to support the strong demand we continue to see in this market.

“These products provide a competitive and flexible offering to support first-time buyers onto the property ladder alongside those with an existing Help to Buy mortgage now moving onto the next stage and looking to remortgage.”

The Help to Buy scheme, was launched in 2013, with the latest iteration of the scheme launching in April this year and running until 2023.

The scheme aims to help first-time buyers with smaller deposits get on the property ladder via new builds, with the government lending up to 20 per cent of the cost of a newly built home, and up to 40 per cent in London.

Borrowers in turn need to produce at least 5 per cent of the price of the home, with the rest of the purchase coming from a mortgage.

According to the latest statistics from the Ministry of Housing Communities and Local Government 328,506 properties have been bought with an equity loan, with the total value of properties sold under the scheme coming to £91.1bn and the total value of equity loans pegged at £20.1bn.

Just over 80 per cent of all completions have been completed by first-time buyers.

The Newcastle’s lending grows 35 per cent in H1 helped by lockdown savings

The Newcastle’s lending grows 35 per cent in H1 helped by lockdown savings

 

The society lent £483m in H1, up from £357m of loans made during the lockdown-hit six months in the first half last year.

The Newcastle enjoyed “a stable source of funding for mortgage lending,” this year, it said, with the savings market continuing to grow, on top of last year’s uplift, owing to lower spending during lockdowns. 

The “strong mortgage market” had been “fuelled by a combination of government intervention and a shift in the needs of homeowners,” it added.

Growth in mortgage lending included adding 2,300 new customers, while “maintaining a sensible lending approach,” the lender said.

It specifically highlighted initiatives for first-time buyers, including its roles in Deposit Unlock and First Homes, as well as its 95 per cent, Help to Buy and Joint Mortgage Sole Proprietor offers.

Operating profit before impairments and provisions was £13m, up from £7.3m in H1 2020.

 

Newcastle brokers

Advice subsidiary Newcastle Financial Advisers “delivered a strong performance,” exceeding planned targets on growth of its customer base, level of funds invested, funds under management, and customer service, the Newcastle said.

The society moved out of its Newcastle city centre head office in early 2021, and is investing in “a substantial programme of transformation”, to provide a future-friendly hybrid working environment at its Cobalt Park, North Tyneside, site.

Andrew Haigh, chief executive at Newcastle Building Society (pictured), said: “We’ve continued our focus on helping communities recover from the impacts of the pandemic, and driven innovations in home ownership to help borrowers onto the property ladder, particularly those with lower deposits.”

The lender also made two new board appointments in H1, following departure of chairman Phil Moorhouse after almost a decade.

James Ramsbotham, CBE DL, was appointed as chairman. Ramsbotham was formerly chief executive at the North East of England Chamber of Commerce, and before that served for 14 years with Barclays, and was chair of Darlington Building Society.

Michelle Faull was appointed as a non-executive director and to the audit and group risk committees. Faull is a former chief financial officer at Coventry Building Society and risk director at Nationwide.

Newcastle BS promotes national account manager

Newcastle BS promotes national account manager

 

Prior to joining Newcastle Building Society she was a corporate key account manager at Metro Bank for just over a year and before that she was a business development manager (BDM) at Virgin Money for nearly four years.

She also worked at Peter Alan as a mortgage broker for three years and held roles at Principality Building Society and Bradford and Bingley.

Newcastle Building Society’s intermediary mortgages head Franco Di Pietro, who recently took over from John Truswell, said: “We’re delighted that Michelle has stepped up to become our new national account manager.

“She has a fantastic relationship with brokers across the UK and as she’s already done this role we knew that she was a perfect fit. We can’t wait to see how she really makes the role her own.”

The lender has made a number of changes to its offerings recently, including reducing rates in its high loan to value products and buy-to-let range, refreshing its product transfer range and re-entering the large loan market.

It has also launched a range of 95 per cent LTV products for the government’s First Homes scheme.