The Newcastle Building Society has unveiled a new mortgage range exclusively for its cash Lifetime ISA (LISA) first time buyer customers.
The mutual 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 mortgages.
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 (pictured), 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.”