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18 December 2019

Newcastle Building Society, has launched a new mortgage range exclusively for its cash Lifetime ISA (LISA) first time buyer customers.

The Society has introduced four exclusive LISA customer mortgages available at 90% or 95% LTV.

A two year fix at 2.69% (5.10% aprc) is available at 90% LTV, or a two year fix at 2.89% (5.20% aprc) at 95% LTV with an early repayment charge of 2% until 30.04.2021, and 1% until 30.04.2022.

Alternatively, for borrowers wanting to fix for longer, a five year fix at 3.05% (4.90% aprc) at 95% LTV is available, or a five year fix at 2.85% (4.80% aprc) at 90% LTV is also available. Both come with an early repayment charge of 5% until 30.04.2021, 4% until 30.04.2022, 3% until 30.04.2023, 2% until 30.04.2024, and 1% until 30.04.2025.

All products come with free standard valuation, £500 cashback, and 10% overpayments per annum.

With the Help to Buy ISA ending last month a LISA gives first time buyers another opportunity to get their hands on a government cash bonus towards their first home.

The LISA can be used to save a deposit for a first home or for retirement.

Savers gain their 25% government bonus monthly and any Newcastle LISA customer qualifies for the Society’s LISA mortgages1

Customers can transfer their Lifetime ISA from another provider and still qualify for the LISA mortgages.

Period of time LISA has been saved into	Penalty on withdrawal of LISA funds (loss of government bonus means savers will lose more than saved)	Access to LISA mortgages
Saving for more than 12 months with Newcastle Building Society or another provider	No	Yes
Saving for less than 12 months with Newcastle Building Society or another provider	Yes	Yes

John Truswell, head of intermediary mortgages at Newcastle Building Society, said: “Following the launch of our Lifetime ISA in 2018, we’ve been looking at a variety of ways to help those saving for their first home onto the property ladder.

“With more preferable rates to standard mortgages, we’re excited to introduce this competitive range exclusive to our Lifetime ISA customers. It doesn’t matter how long customers have had their Lifetime ISA with Newcastle Building Society, provided they’ve saved for at least one year to access their Lifetime ISA penalty free, they’re able to apply for these mortgages.”

LISA savers will only receive the Government’s 25% bonus if they go on to use the savings in their Lifetime ISA towards the deposit on their first home and/or towards their retirement. If savers make a withdrawal not connected to these two events then a 25% penalty will apply to the amount withdrawn. This will recover the Government’s bonus and savers will get back less than they have saved.

Product details and the full range of available products can be found at www.newcastleis.co.uk