Newcastle for Intermediaries launches ‘First Step’ to give FTBs up to 98% LTV option

05 September 2025

Newcastle for Intermediaries has launched First Step, a new low-deposit mortgage proposition, boosting options for first-time buyers with smaller deposits looking to move quickly onto the property ladder.

First Step offers lending up to 98% LTV with a minimum cash deposit of just £5,000, helping eligible buyers take the crucial first step to home ownership. The lender’s latest proposition offers a max loan of up to £350,000 and will initially launch with London and Country Mortgages, Connells Group and Mortgage Advice Bureau from September 2025.

A five-year fixed rate is available at 5.25% (6.2% APRC) and comes with a free standard valuation up to £550,000 and 10% overpayments per annum.

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

“We know how hard it is for many first-time buyers to build a large deposit in today’s housing market. First Step has been designed to give people who have worked hard to save a cash deposit a realistic route into home ownership, while ensuring robust affordability and lending criteria. We’re pleased to bring this practical, intermediary-focused solution to market and to support brokers in finding the right outcomes for their clients.”

Sidney Wager, Managing Director at L&C Mortgages said,

“L&C Mortgages is delighted to partner with Newcastle Building Society in its launch of the First Step product, ahead of its full market release. We know that first-time buyers continue to face significant difficulty in building a big deposit to stand a chance of buying.

“This will allow L&C advisers to find a solution for more first-time buyers, who can afford to buy but may only have a smaller cash deposit. It’s a practical step towards broadening routes to homeownership, harnessing the value of advice to ensure positive outcomes for customers.”

First Step is available through intermediaries and direct channels. To learn more about Newcastle for Intermediaries, visit: www.newcastleforintermediaries.co.uk