Newcastle for Intermediaries increases maximum LTV for new build flats to 90%

19 June 2025

Newcastle for Intermediaries has raised the maximum loan-to-value (LTV) for new build flats to 90 per cent.

The change means buyers purchasing a new build flat could secure a Newcastle Building Society mortgage with just a 10 per cent deposit, increasing options for homebuyers. This follows a change earlier in the year to increase the maximum LTV for new build houses to 95 per cent.

The decision will provide further support for the housebuilding sector by broadening access to the new build home market for younger aspiring homeowners and those borrowers with smaller deposits.

This also follows the Society's recent move to lower its residential stress rate for mortgages with terms of up to five years, a change specifically designed to enhance borrower affordability and reinforce the lender’s commitment to widening access to home ownership and helping more people to secure affordable mortgages.

Mark Pender, Director at the Mortgage Advice Bureau New Homes, said:

“This and other recent policy changes introduced by Newcastle Building Society represent a positive development within the new build market. By enhancing accessibility to new build flats across the UK with lower deposit requirements, they are creating greater opportunities and flexibility for our clients. This move reflects the lender’s continued commitment to supporting key segments of the housing sector, which we are actively encouraging across the lending community.”

Franco Di Pietro, head of intermediary mortgages at Newcastle Building Society said:

“By raising our LTV on new build flats to 90 per cent and having already extended up to 95 per cent on new build houses earlier this year, we’re reducing the deposit barrier that many borrowers face, while broadening access to the modern, energy-efficient homes our borrowers want.

“We’ll continue innovating our products to ensure we meet the challenge of affordability, so that more aspiring home buyers or people looking to make their next move can do so with confidence.”

To learn more about Newcastle for Intermediaries, visit: https://www.newcastleforintermediaries.co.uk/