Newcastle cuts first-time buyer mortgage rates

The lender is now offering a five-year fixed rate at 4.39 per cent for borrowers with a 5 per cent deposit, which comes with no reservation or completion fees, a free standard valuation and £200 cashback.

Also available at 95 per cent loan-to-value (LTV) is a five-year fixed rate at 4.15 per cent, which comes with a £199 reservation fee and £800 completion fee.

Newcastle Intermediaries has introduced two new fixed rate deals as part of its All in One offering, also available at a maximum LTV of 95 per cent.

The first All in One product is fixed at 4.49 per cent for two years, with a five-year fixed rate available at 4.59 per cent.

Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said: “We’re committed to supporting new buyers on to the property ladder and I’m pleased we can offer such a wide range of products to suit their needs.

“Our All In One product range is ideal for first time buyers looking to keep the costs of purchasing their first home down, and the choice of rates and fixed terms show we want to help brokers find the right choice for their clients.”

All in One products include all standard legal costs, including Land Registry fees, Land Registry priority search, bankruptcy searches, property searches (such as local authority, water and drainage fees) and VAT.

In addition to no legal fees – with the exception of stamp duty and non-standard conveyancing costs - the All In One mortgage has no valuation fees and product fees.

Daniel Bailey, principal at Derbyshire-based Middleton Finance, said: “This is great news for first-time buyers, especially ones who have got a 5 per cent deposit. Not only is the rate competitive; the fact that you have an option of no arrangement fee and free valuation is positive news.

“Costs have an impact too for first-time buyers, and the free valuation especially helps with overall costs. It is nice to see lenders looking at that side of the market.”

simon.allin@ft.com