The seven-year fixed rate products start from 3.29 per cent up to 75 per cent loan to value (LTV), and from 3.34 per cent up to the same LTV for 10-year fixed rates.

Both options include a free valuation and a choice of arrangement fee and £500 cashback options.

The rolling end dates apply to its whole residential offering, which includes two, five, seven and 10-year fixed rate products.

Two and five-year fixed rates in the prime residential range start from 3.1 per cent and are also available up to 75 per cent LTV.

Emma Hollingworth (pictured), distribution director at MPowered Mortgages, said: “At a time when mortgage rates and the cost of living continue to rise, it’s crucial that lenders are responding to the needs of homebuyers and supporting them through this challenging time for purchasing a home.

“This is why we have launched our new seven and 10-year fixed rates and rolling end-date products which are both aimed at providing both more certainty over monthly payments in the long run as well as enabling homebuyers to get the full benefit of the fixed rate they sign up for.”

She said the firm remained committed to improving the homebuying journey and providing homebuyers with products that best meet their needs.

Newcastle adds resi three-year fixed rates

Newcastle has released a new range of three-year fixed rates aimed at borrowers with smaller deposits.

The range includes a three-year fixed rate at 95 per cent LTV, priced at 3.8 per cent. It is subject to early repayment charges, starting at three per cent in the first year and then falling one per cent per year.

The products are available for purchase and remortgage up to £500,000, have no product fees, £500 cashback and permits 10 per cent overpayments per year.

Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “As average UK house prices reach an all-time high this year, more borrowers are looking to purchase properties with smaller deposits.

“The introduction of a new range of higher LTV three-year fixed rates underlines our commitment to providing brokers with attractive solutions that meet the needs of their clients. Whether borrowers are looking to purchase or remortgage, our higher LTV range continues to provide choice to lower deposit borrowers.”

JMSP can help first time buyers get on to the property ladder or borrowers wanting to purchase a home later in life. They use the income of a family member to increase borrowing capacity.

Newcastle’s range includes a 90 per cent LTV at 3.49 per cent – with an APRC 3.8 per cent – and a 95 per cent at 3.59 per cent, with an APRC of 3.9 per cent.

All fixed-rate products in the JMSP portfolio come with a free standard valuation on properties of up to £500,000 and allow 10 per cent overpayments per annum in addition to the £499 overpayments already permitted.

Adapting to borrowers’ circumstances

Mortgage affordability is calculated using income from both the occupying and non-occupying borrower. Although the mortgage will be in joint names, the occupying borrower will own the property and will be the sole name on the title deeds.

Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, (pictured) said: “All borrowers’ circumstances are different, and it’s important to Newcastle Building Society that our approach to affordability adapts accordingly. Our competitive range of JMSP products are already being employed by brokers to meet their clients’ homeownership goals and now, as we introduce these five-year fixed rate products up to 95 per cent LTV, borrowers who require family support have the opportunity to secure the home they have their heart set on.”

Scott Taylor-Barr, financial adviser at Carl Summers Financial Services said JBSP mortgages have been one of the really useful innovations in the mortgage market over the past few years.

“There are more and more lenders able to look at lending on this basis, which is great for borrowers. Newcastle’s JBSP deals for those with just a five per cent deposit is good news and will help more people become home owners. It is very important to get good quality advice with these mortgages, especially the person helping the buyer, as they will have all of the responsibility of having a mortgage, but have no claim on the property they are helping to buy.”

The product is priced at 3.26 per cent and comes with early repayment charges (ERC) for the first five years for the fixed term.

The ERC starts at five per cent and then falls by one per cent per year.

It is available at 80 per cent loan to value (LTV) and is eligible for house purchase and remortgage up to £1m.

The product also allows flexible overpayments of 10 per cent per year, £500 cashback, and free standard valuation.

Mark Wilkinson (pictured), national sales manager at Newcastle Building Society, said: “As the market evolves we are committed to providing a range of solutions that address the challenges brokers face as consumers look to remortgage or purchase a property in the coming months.

“We are acutely aware of concerns borrowers have due to the increasing cost of living. Against a backdrop of rising costs and energy bills, our seven-year fixed rate mortgage product offers borrowers peace of mind by delivering payment certainty, as well as protection against rising interest rates.”

Let’s start with a host of positive shifts from mutuals who continue to deliver a range of innovative solutions to meet ever-changing landlord needs in what remains a buoyant BTL marketplace. 

The Nottingham introduced a series of criteria changes including lower interest cover ratio (ICR) figures and reduced calculation rates for standard BTL and limited company applications, together with the removal of a required minimum income.  

The lender also raised the maximum loan to value (LTV) for lending on flats to 75 per cent (was 65 per cent), removed all Covid-related criteria and withdrew the requirement to see last month’s personal and business bank statements as standard. 

Mansfield Building Society updated its BTL criteria to include an increase in its maximum LTV from 75 per cent to 80 per cent on selected products. The mutual also reduced the minimum age for applicants to 21 and can now accept first-time landlords. If the applicant is not a first-time landlord, the Mansfield can now also accept gifted deposits.  

Newcastle Intermediaries removed the minimum income criteria on its BTL mortgage products in an effort to broaden its appeal to landlords who have lower or non-traditional incomes.  

Borrowers no longer need to meet the £25,000 per annum (£30,000 joint) minimum income requirement on Newcastle Intermediaries’ BTL mortgage products, with affordability instead being assessed on the ICR. Borrowers must be in receipt of an employed, self-employed or pension income. 

Leeds Building Society lessened its stress rate on BTL fixed rate deals for five years or more. The stress rate has been reduced from 5.5 per cent to 4.5 per cent for BTL purchase or remortgage with additional borrowing on longer term fixed rate mortgages. 

Specialist lending moves 

From a specialist lending standpoint, West One Loans announced a reduction on the rates of its BTL lifetime tracker range.  

Its Lifetime Tracker Standard W1 is now available at base rate plus 2.09 per cent, previously base rate plus 2.24 per cent. It has also reduced the rate on its Lifetime Tracker Specialist W1 product range with rates now starting at base rate plus 2.34 per cent, down from the previous rate of base plus 2.49 per cent. 

Aldermore launched BTL products for individual landlords and company landlords with single residential investment properties, multi-property individuals and company landlords, houses in multiple occupation (HMO), and multi-unit freeholds.  

For individual landlords with single residential investment properties, borrowers can access a two-year fixed rate at 75 per cent LTV at 3.48 per cent. This is the same rate for company landlords and is subject to a 1.5 per cent product fee. For HMO and multi-unit freeholds, its two-year fixed rate at 75 per cent LTV stands at 3.98 per cent. It also comes with a 1.5 per cent product fee. 

Last but not least, Shawbrook is now offering new BTL mortgage customers with energy efficient properties a discount, or partial refund, of up to 60 basis points on their arrangement fee. New customers will be able to obtain the Energy Efficiency Discount on their arrangement fee when an EPC is produced confirming the property’s rating of ‘C’ or above. 

For new mortgages on properties where the EPC rating improves to at least a ‘C’ during the mortgage term, customers can apply for a partial refund of their arrangement fee, plus the cost of the new certificate (up to £100). 

This reflects a busy month for building societies and specialist lenders and I’m sure there is more to come over the summer months. 

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.” 

The two products have rates of 2.95 per cent for the two-year fix, and 3.1 per cent for the five-year fix. 

Both deals have no product fees, offer a free standard valuation and free legal fees, so long as the borrower chooses the mutual’s selected solicitor. 

The two-year fixed deal has an early repayment charge (ERC) of two per cent in the first year, down to one per cent in the second. 

The five-year fixed deal has an ERC of five per cent in the first year, and this drops by one percentile annually to one per cent in the final year. 

Both allow ERC-free overpayments of up to 10 per cent each year. 

Franco Di Pietro (pictured), head of intermediary mortgages at Newcastle Intermediaries, said: “We know that with the rising cost of living and recent increases to base rate, even more homeowners are looking to remortgage on the best possible terms.  

“By introducing two new 60 per cent LTV products and assistance with fees, we’re giving brokers and their clients some competitive options backed by our flexible approach to underwriting and leading service levels.” 

Thompson has worked at Aldermore for just under five years, joining as director of mortgages in 2017, before being appointed group managing director of retail finance in 2020.

Thompson told Mortgage Solutions: “After five years I’ve decided now is the right time to move on from Aldermore. I’m immensely proud of what my team and I have achieved together and I want to wish Aldermore every success for the future. I now plan to take some time out with my family, before deciding what my next challenge should be.”

It was reported last week that Aldemore’s intermediary distribution head, Nick Parker, would also be leaving the firm.

Aldermore has declined to comment on Thompson’s departure.

A legacy to be proud of

Thompson previously worked at Newcastle Building Society as customer director for just under a year. At the mutual he was also an executive director where he oversaw operations, marketing, mortgages, savings and financial services.

He also spent nearly eight years at Principality Building Society in various senior roles, including director of distribution and head of retail.

During his tenure, he oversaw Principality’s retail network, intermediary sales, telephony and digital distribution. He also led the development of its agency acquisition programme, which changed their distribution, and put in place a society-wide customer interaction programme.

Before that he worked at HBOS for nearly six years, initially as head of network sales and marketing for nearly two years and then area sales manager for around four years.

The change came into effect from 4 May and means borrowers will no longer need to show £25,000 minimum income per year as a sole borrower, or £30,000 as a joint borrower, to access its BTL mortgages.

The mutual said that affordability would be assessed on the interest coverage ratio (ICR). Borrowers need to be in receipt of employed, self-employed or pension income.

Stuart Miller (pictured), chief customer officer at Newcastle Building Society, said: “With the primary driver for affordability being rent generated on the property itself, additional affordability assessments such as having the minimum income criteria in place can prove unnecessary.

“Removing this requirement not only underlines our commitment to the BTL market by ensuring we continue to deliver a competitive and flexible offering, but also helps to broaden the accessibility of Newcastle Intermediaries’ proposition to brokers and their clients.”

Danny Belton, head of lender relationships at Legal & General, said: “It’s encouraging to see Newcastle Intermediaries take a common-sense approach to lending and ease the barrier to entry for BTL borrowers through the removal of its minimum income requirements.

“This will prove a welcome change for customers who will now benefit from a simplified mortgage application process.”

Earlier this year the mutual integrated with Legal & General’s mortgage criteria support service, Smartrfit, which has allowed the mutual to provide more accurate data to brokers and update them with latest criteria and products.

Wilkinson was promoted after three years as the mutual’s business development manager for the North East and Scotland.

Over his 15-year career in financial services, Wilkinson has worked in branch as well as in the intermediary and specialist lending markets for Newcastle Building Society, Pepper Money and Virgin Money.

In his new role, Wilkinson’s focus will be to manage a growing Newcastle Intermediaries’ business development team and enhance its broker proposition throughout the UK.

Wilkinson (pictured), who lives in Newcastle, said he is excited at the opportunity to lead his team to drive the mutual’s growth in the market.

He added: “Our business development managers have decades of experience and knowledge of the intermediary lending market. We pride ourselves on our service to brokers and their clients.”

Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “We are thrilled to witness Mark progress within our intermediary arm. Having built long-term relationships with brokers and their clients, Mark has already proved himself a valuable asset as we look to strengthen our commitment to our intermediary partners.”

The product has a rate of 2.99 per cent for 10 years and is available up to 80 per cent loan to value (LTV). It is also subject to a product fee of £999.

It comes with early repayment charges of five per cent until 2028, which then falls one per cent annually until 2032.

The product is eligible for purchase and remortgage, providing access to loans of up to £1m.

Overpayments of 10 per cent are also permitted.

Franco Di Pietro, head of intermediary mortgages at Newcastle BS (pictured), said that it was “ready to respond to changing market trends” to meet the diverse needs of brokers and clients.

He explained: “In the current rate environment and with the rising cost of living, our 10-year fixed rate offers brokers and their clients an option for those who may want or need to plan ahead and value the payment stability and peace of mind that an extended fixed rate provides.”

A PR spokesperson said that this the only 10-year fixed rate in the mutual’s range and it is the first it has launched in a few years. They added that Newcastle BS had been “seeing increased consumer demand for longer-term fixes in a rising rate environment”.

According to Moneyfacts, the number of 10-year fixed rates on the market has fluctuated over the past year, going from 114 in April last year to a peak of 180 in February this year. It has since then steadily fallen to around 115 to date.