"The way affordability is assessed for shorter term products sometimes limits opportunities for borrowers to own their dream home."
- Francesco Di Pietro, head of intermediary mortgages at Newcastle BS
Newcastle for Intermediaries has introduced a new range of products which enable borrowers to increase their house buying purchasing power.
The lender’s Affordability Boost range is available through selected products only and offers brokers and their clients enhanced affordability by assessing borrowers more favourably than standard residential five year fixed rate criteria, enabling borrowers to increase the size of their loan, depending on their financial situation and requirements.
For example, a couple with one child, a combined income of £75,000 and monthly credit commitments of £650, could typically borrow up to £305,000 on the Society's standard fixed rate products when borrowing at 85% LTV. However, with an Affordability Boost mortgage, they could borrow up to £375,000.
The proposition is available up to 95% LTV for customers looking for a fixed rate mortgage over more than five years, including first-time buyers, home movers and remortgagers.
Included in the range is a six-year fixed rate at 5.24% available up to 90% LTV that comes with a £999 product fee.
The 72-month product is designed to ensure that by the time a borrower completes on their property the product still has more than five years remaining on their term.
Francesco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “Current market conditions have had a negative impact on borrowing capacity and the way affordability is assessed for shorter term products sometimes limits opportunities for borrowers to own their dream home.
“By adapting to the dynamic nature of the market we can ensure that we continue to offer brokers a flexible proposition that meets the needs of their clients. That’s why we’ve worked collaboratively with our broker partners to develop a new range of products to improve affordability in a sustainable way.
“The Affordability Boost range is complemented by the enhancements offered by our flexible lending criteria, direct access to our team of underwriters and support for each broker via their dedicated regional business development manager.”
