New 98% mortgage could help first-time buyers get on the ladder sooner!

Disclaimer: The information in this article is provided for general information purposes only and does not constitute financial or mortgage advice. Products and eligibility criteria will vary depending on individual circumstances. Before making any financial decisions, you should seek advice from a qualified mortgage adviser or financial professional.

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Newcastle Building Society has introduced a new mortgage product that allows borrowing up to 98% loan-to-value (LTV) on properties priced between £96,000 and £350,000.

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For example, on a property worth £210,000, the minimum deposit required would be around £5,000. This product may help some first-time buyers with a smaller deposit requirement compared to more common 90–95% LTV mortgage options.

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As with any mortgage, affordability checks will apply. Lenders will consider your income, outgoings, credit history, and other financial commitments to determine how much you may be able to borrow. It is important to remember that higher LTV mortgages can sometimes come with higher interest rates, which may affect monthly repayments.

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In addition to the deposit, other costs such as legal fees, valuation fees, and moving expenses should be taken into account when planning a purchase.

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If you are considering applying for this type of mortgage, obtaining an Agreement in Principle can indicate what you may be able to borrow. Speaking with a mortgage adviser can also help you understand whether this type of product is suitable for your individual circumstances.

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If you would like to discuss your mortgage options, you can contact our team at hello@hellomortgage.co.uk or call 0800 292 2557.

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Important information: Your home may be repossessed if you do not keep up repayments on your mortgage.