Reasons to use Newcastle Building Society for a mortgage

Newcastle Building Society mortgages can be a strong option for borrowers who need flexible criteria and a more individual approach to get a mortgage agreed. Trinity Financial recently met with Becky Roberts, Business Development Manager at Newcastle Building Society, to discuss the main reasons brokers use Newcastle for Intermediaries.

Newcastle BS may be particularly useful for later-life mortgages, interest-only mortgages, limited company directors, visa customers, higher-income borrowers and even take Restricted Stock Unit (RSU) income with a 12-month track record of what’s vested. The society can also consider monetising investments, for example, Self-Invested Personal Pensions (SIPPs), although this is on a case-by-case basis. 

Newcastle’s Becky Roberts highlights several key reasons why our brokers should arrange more mortgages through them, including no maximum age on certain later-life repayment mortgages, 5% deposit mortgages, interest-only mortgages with affordability assessed on an interest-only basis, limited company director income flexibility, and more generous overpayment options.

Why use Newcastle Building Society for a mortgage?

Newcastle Building Society is not always the cheapest mortgage lender, but it can offer flexible solutions for borrowers who do not fit standard high-street bank criteria.

Aaron Strutt, Product Director at Trinity Financial, says: “Building societies often offer different mortgage products and lending criteria from the main high-street banks. They can sometimes be more expensive than the biggest mortgage lenders, but they are often cheaper than many specialist providers and challenger banks. For borrowers who need flexible underwriting, a building society such as Newcastle can be a very useful option.”

Newcastle BS later-life mortgages

One of the main reasons to use Newcastle Building Society for a mortgage is its later-life lending policy. For residential repayment mortgages, there is no maximum age at the end of the mortgage term, although applicants must be no older than 78 when they apply.

Newcastle can use earned income where 50% or less of the mortgage term is before the borrower reaches age 70. This can help older borrowers who are still working and want a longer mortgage term.

The lender also has no maximum age limit for buy-to-let mortgages.

Interest-only mortgages with Newcastle Building Society

Newcastle BS offers interest-only mortgages up to age 80, secured by earned income. Affordability is assessed on an interest-only basis, which can help some borrowers secure the loan size they need.

The lender can consider downsizing as the repayment vehicle when borrowers have a 40% deposit and part-and-part mortgages with a 15% deposit. There is no minimum income requirement. The minimum equity in a property must be £150,000 in London and the South East. 

Newcastle's Enhanced+ offering 6x salary mortgages

Newcastle’s Enhanced+ mortgage proposition is available for loans over £450,000. It can allow up to six times income with a 10% deposit, with 100% of the eligible additional income considered.

This may help borrowers with bonus, commission, overtime or Restricted Stock Unit income. Newcastle can consider RSU income with a 12-month vested track record and evidence of what is due to vest over the next 12 months.

Mortgages for limited company directors

Newcastle Building Society can be useful for limited company directors. It may use the latest year’s salary and dividends, or operating profit before tax, based on a two-year average plus salary.

This can help business owners who retain profits in their company rather than drawing all available income personally. The lender can also issue mortgages to the self-employed when they have switched insurers, providing they have been successful. 

Newcastle mortgages for visa customers

Newcastle BS can issue 5% deposit mortgages to certain buyers in the UK on a visa, including Tier 2 and spousal visa applicants. This may help foreign nationals living and working in the UK buy a home with a smaller deposit.

Other Newcastle Building Society mortgage features

Newcastle also offers:

• 5% deposit mortgages for purchases and remortgages
• New-build house mortgges wth a 5% deposit 
• New-build flat mortgages with a 10% deposit, although 1 bed flat buyers need a 20% deposit
• New build sales incentives accepted up to 5%, including a builder’s gift
• Residential mortgage terms up to 40 years
• Annual overpayments of 10%, plus monthly overpayments of up to £499.99

Speak to Trinity Financial about Newcastle BS mortgages

A Newcastle Building Society mortgage may suit borrowers who need flexible lending criteria, particularly for later-life lending, interest-only, limited company director income, visa customers, larger loans or family-supported purchases.

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage