The extension of Newcastle Intermediaries’ Joint Mortgage Sole Proprietor (JMSP) portfolio will see the introduction of a series of 5-year fixed rate products available up to 95% loan-to-value (LTV).
The products are designed to support first-time buyers onto the property ladder and borrowers purchasing a home later in life or following a change in circumstances by using income of a family member to increase borrowing capacity.
The range includes a 90% LTV at 3.49% (APRC 3.8%) and a 95% at 3.59% (APRC 3.9%). Early repayment charges apply at 5% until 31.08.2023, 4% until 31.08.2024, 3% until 31.08.2025, 2% until 31.08.2026 and 1% until 31.08.2027.
All fixed rate products in the JMSP portfolio come with a free standard valuation on properties of up to £500k and allow 10% overpayments per annum for borrowers who want the flexibility to make lump sum overpayments in addition to the £499 overpayments already permitted.
Franco Di Pietro (pictured), head of intermediary mortgages at Newcastle Building Society said: “All borrowers’ circumstances are different, and it’s important to Newcastle Building Society that our approach to affordability adapts accordingly.
“Our competitive range of JMSP products are already being employed by brokers to meet their clients’ homeownership goals and now, as we introduce these 5-year fixed rate products up to 95% LTV, borrowers who require family support have the opportunity to secure the home they have their heart set on.”
JMSP enables family members to help close relatives own their own home, increasing the borrowing power of the applicant by allowing them to apply for a mortgage using the supporting income of a family member.
Mortgage affordability is calculated using income from both the occupying and non-occupying borrower. Although the mortgage will be in joint names, the occupying borrower will own the property and will be the sole name on the title deeds.
