Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Newcastle Expands Affordability Boost for New-Build Buyers up to 95% LTV

Newcastle for Intermediaries has expanded its affordability boost proposition to include eligible new-build purchase applications up to 95% loan to value (LTV). The change applies to eligible first-time buyers, homemovers, and existing customers purchasing a new-build property.

The affordability boost allows customers who select a qualifying longer-term fixed rate mortgage to be assessed using criteria linked to the longer-term payment certainty offered by the product. According to Newcastle for Intermediaries, extending the proposition to 95% LTV new-build purchases is intended to help borrowers who may face affordability constraints or have smaller deposits.

The lender stated that this move comes as affordability remains a challenge for some prospective new-build buyers. Factors cited include higher interest rates, the end of the Help to Buy scheme, inflationary pressures on house prices, and difficulties saving for a deposit.

For letting agents and inventory clerks, this development may be relevant as it could increase the number of first-time buyers and homemovers able to access new-build properties, potentially impacting demand in the rental and sales markets.