Residential lending criteria

The Society undertakes a thorough affordability assessment to ensure that we lend responsibly. How much you can borrow is calculated through a combination of your income, regular financial commitments and household / lifestyle expenditure and the term required at an agreed stressed rate to ensure that affordability still exists beyond the initial product rate.

In assessing affordability all unsecured loans / HPI agreements that have more than 6 months to run, credit cards and maintenance will be deducted. In addition, deductions to applicant's disposable income will also be made for declared household and lifestyle expenditure which is compared against statistical data for accuracy. We request that you obtain accurate details of your applicant's income and expenditure which will ensure a more accurate calculation. We also recommend that prior to beginning a Decision in Principle that you have ran your clients through our affordability calculator to ensure that the loan is affordable.

If you have any questions about how to use the calculator, please refer to our frequently asked questions section. You can also contact our Intermediary Support team at 0345 602 2338 for help, the team is available Monday to Friday, 9am to 5pm.

We understand that affordability can be a key challenge for many people, so that’s why we have a range of products to help.

Our Affordability Boost range offers a better affordability assessment for fixed-rate mortgages of longer than five years. This means your client may be able to borrow more, depending on their financial situation.

This will be available for those who select a product term of more than 5 years and is not available for all lending types and cannot be combined with another product i.e. Interest Only, Enhanced+, Shared Ownership, Government First Homes etc.

Please note that Affordability Boost is available on JMSP products. To benefit from the enhanced affordability, please select both JMSP and long-term 69 months or more option when applying.

Affordability Boost is now available on 95% LTV new build houses, please select new build standard and long term 69 months or more option when applying.

Read more about our Affordability Boost range here.  

Minimum age at application: 18 years. Maximum age at application: 78 years.

There is no maximum age limit for borrowers at the end of the loan term if the loan is on a Capital Repayment basis (please refer to our later life lending criteria below). However, if any element of the loan is Interest Only, lending will not be approved beyond the age of 80.

All applicants must have at least 2 years to serve.

Where the applicant will also live in accommodation provided by M.O.D. then they must be able to support both the new mortgage and any associated living costs for the M.O.D. property. This must be factored into the affordability assessment.

Where the applicant will be living in M.O.D. accommodation on a full time basis then the property to be purchased must be occupied by spouse/partner.

Where it is a sole applicant, purchasing the property it must be occupied on a full time basis. It must be plausible that applicant can commute to place of work on a daily basis unless on tour overseas.

Given nature of employment, it is often difficult to locate applicant on the voters roll. Whilst we would still expect applicant to provide proof of residency we no longer require an explanation as to why they do not appear on the voters roll.

A 3 year residency history is required. BFPO addresses are acceptable as our credit search facility is able to search these addresses.

Lending will be permitted to customers utilising the Forces Help to Buy Scheme subject to;

1. Provision of the applicants 'Forces Help to Buy Loan - Personal Information Note' from the Ministry of Defence in order to verify the detail of the loan being granted under the scheme and;
2. The proposed monthly repayment and insurance premium disclosed in to be taken as a commitment for affordability purposes.

For the avoidance of doubt, 100% of the deposit can be funded via the Forces Help to Buy Scheme. A personal contribution to the deposit from the applicant themselves is not required.

For Armed Forces personnel where consent to let is required, no fees will be charged and the interest rate will not be loaded. This is irrespective of where the borrower will be based.

We may consider applications for properties purchased at auction.

Please note:

• A physical valuation will be required for all auction properties.
• Auction purchases often have strict completion deadlines. We will process applications in line with our usual service standards, we cannot guarantee completion within auction timescales.
• Newcastle Building Society accepts no responsibility for any financial penalties, loss of deposit or other costs incurred if an auction purchase does not complete within the required timeframe.
• Please see our unacceptable properties section to make sure the property is within criteria before applying.  

It is expected the applicant would have resided back in the UK for a minimum of 6 months and are able to provide the last 6 months bank statements to ascertain credit conduct. However applications will be considered where applicants have resided back in the UK for less than 6 months where underwriters are able to evidence sufficient acceptable credit bureau data and credit track record.

Self employed applicants will not be considered, as there would be insufficient track record of earnings in the UK.

The property must be occupied by applicant and immediate family.

We will expect that the borrower's main residence is currently within the UK and that they will reside in the property whilst in the UK. We do not accept 'ex-pat' type scenarios where the applicant wishes to purchase a property in the UK and return at a later date.

We will only consider applications where the applicant's spouse/partner or immediate family will be a permanent resident in the property. The property must not be left unoccupied for more than 30 days a year.

If the applicant is required to pay for accommodation whilst working abroad then details of this must be disclosed during the application process and deductions made within the affordability assessment.

We would normally expect to see salary paid into a UK bank account either direct or via transfer. The salary paid must be in UK sterling. We do not accept salary paid in any other currency as we do not currently lend for Foreign Currency Loans (see below).

The employer must be generally 'Blue Chip' for both UK and International companies.

The max LTV for British Nationals Working Abroad is 80%.

We expect applicants to currently or previously have held a UK mortgage.

Where we cannot confirm the applicant via our credit search then we must have a minimum of last 6 months bank statements, a copy of the current and previous contracts to establish a track record in their chosen industry.

For those applicants who already have 1 or more investment mortgage, we will consider up to 95% LTV on the basis that we receive:

• Evidence that the mortgage conduct on all investment mortgages is satisfactory with no missed payments. Sight of conduct via credit bureau data is acceptable.
• Rental income required for affordability - the rental income is to be input as income and the mortgage payment as a commitment to assess overall affordability.
• Rental income not required for affordability - the rental income received must cover the current mortgage payment by at least 145%. If there is a shortfall, this needs to be added as a commitment.
• Where applicants have a significant investment portfolio (greater than 5), then we would also expect to have sight of their BTL portfolio summary.
• Please see 'Let to Buy' for those applicants who are looking to rent out their existing property and purchase a new home to reside in through Newcastle Building Society.

Our full Buy to Let lending policy is available here.

Contract workers are considered a higher risk to the Society because there are concerns about their affordability once their contract ends. To mitigate this risk, we require a work history of at least 2 years in the same sector, with no more than a 6-week gap between contracts. This work history must be documented through P60s, tax calculations and overviews, or financial accounts.

The only exceptions to this requirement are qualified teachers, medical professionals, and solicitors. Due to the nature of their professions, we expect these individuals to have more stable careers.

Day-rate contractors/Umbrella companies/IR35

For day-rate contractors, umbrella companies, or IR35 workers, we require:

• Copies of current and previous contracts covering the last 12 months.
• Applicants must have 12 months’ experience as a contractor at the time of application.
• The current contract to have at least one month remaining, or evidence of a new or extended contract.
• One-month bank statement copy

Please note: Contracts quoting a daily or weekly rate will be calculated based on an assumed 46-week annual income.

If paid through an umbrella company, the total gross pay on the payslips may include different components like basic salary, commission, additional taxable income, and holiday pay. If the contract confirms the contractor is paid via a daily or hourly rate, the income does not need to be split into these separate elements and can all be keyed as basic salary.

For applicants on a PAYE basis (including IR35), the income will be calculated based on the lower figure from either the latest contract or the average of the last three months of payslips. One month's bank statement and proof of a two-year work history will also need to be provided.

If the applicant is self-employed, their income will be based on their latest contract. Evidence of a two-year work history will need to be provided.

Fixed-term contract/Recruitment agency/Zero-hour contracts/Nurse Bank Staff

We accept 100% of income if a two-year track record in the chosen industry can be provided. This can be evidenced through P60s or tax calculations and relevant overviews. For those on zero-hour contracts, nurse bank staff, or agency work, we require 3 months of payslips. If they are paid weekly, you will need to provide 12 weekly payslips.

Please note: Only 50% of the income can be considered when it is declared as a secondary job, and a 12-month track record must be available. Where the applicant holds 2 part time jobs with hours similar to full time employment then 100% of both incomes can be used.

CIS workers

Workers paid under the Construction Industry Scheme (CIS) can be considered if proof of income for the past two years is provided. This should be evidenced by SA302 forms and any supporting documentation.

Early Career Teachers (ECT)

Early Career Teachers (previously known as NQTs) will only be considered if they are in their second year of the program.

Junior Doctors

Only Junior Doctors who are in Foundation Year 2 or higher will be accepted. Foundation Year 1 Junior Doctors are not eligible.

As part of our overall assessment, the Society will credit score all mortgage applications to assess the credit worthiness of applicants. Applicants will be credit scored at Decision in Principle stage and this will leave a soft footprint on their credit file. Please note, this will leave a hard footprint if the case proceeds to a full mortgage application.

The credit score will either accept, decline or refer applications to underwriters for a manual assessment.

The Society will use credit scoring to determine whether to proceed with an application. Applications will normally be declined in the following circumstances:

• Current secured arrears or recent history of non payment
• Current unsecured arrears or history of delinquency in last 3 years
• Any type of unsatisfied CCJ or Default irrespective of amount (£)
• Any secured or unsecured credit related CCJ or defaults which have been satisfied within the last 3 years irrespective of when registered
• Any insolvency i.e. Bankruptcy / IVA / DRO that has been satisfied within the last 3 years
• Any evidence of previous or current property being repossessed
• We will not lend on cases where there is active debt management or evidence of any active debt collection payments and any debt management /collection programme must be settled for at least 12 months, with satisfactory credit record demonstrated since that time

Our underwriters may be willing to accept a maximum of 2 satisfied defaults/CCJs below £250 from utility companies, communications or mail order with satisfactory explanation within the last 3 years. This is still subject to the whole case being good quality.

You can register and submit a residential DIP via our website Newcastle for Intermediaries online portal. 

By registering online, you will set up your unique login details and, once approved, join our panel of advisers. We will aim to review your registration within three to five working hours of you applying (Monday to Friday, 9am to 5pm).

Once you have been accepted, you will be able to log in and get an instant decision in principle, confirming whether a client has been approved for a mortgage with us, as well as manage DIP cases you have submitted online.

On completion of the DIP, you can now progress to full application and also submit supporting documentation via our document upload facility.

A definition of a dependent relative is a father, mother, son or daughter whom our applicant is purchasing a property for:

• The applicant must be able to afford both this mortgage and their existing mortgage. Full details of the existing commitment must be obtained;
• For affordability purposes, the applicant's current mortgage commitment will be taken as a monthly commitment;
• Consent to Mortgage forms for the dependent relative must be obtained by the acting solicitor;
• Where re-mortgaging, care must be taken to establish that there has been "no undue influence" applied;
• Further advances are available once the mortgage has completed 12 months and conduct has been satisfactory; and
• We do not accept regulated Buy to Let, where the dependent relative pays any form of rent to the borrower.

Where an applicant has been employed for less than 6 months we may require sight of the employment contract. This is instead of an employment reference which can often lead to delays in processing the application.

Loan to Value (LTV)

Our maximum LTV is set out in the table below:

Income multiple caps

We require you to provide us with a true reflection of the applicant’s expenditure so that we can ensure affordability is calculated correctly.

Income multiples are capped at 6x income for employed applicants and 5.5x income for self-employed applicants. For joint applications, where one applicant is self employed and their total income is greater than the other applicant’s non self-employed income, the 5.5x income will apply.

Overtime/ bonus/ commission income

We can take up to 100% of frequent payments (overtime/bonus /commission) where:

• Paid monthly as evidenced on last three months consecutive payslips; and
• Year to date earnings on payslips must show these payments have been consistent.

We can take 100% of less frequent bonus payments where:

• A two year track record is available via the last two P60s
• Gross income, including bonus, must be in excess of £100,000.

Non-standard Income

We can consider SIPP (Self Invested Personal Pension) and RSU (Restricted Share Unit) as an additional income. This will be on a case by case basis and subject to agreement from the underwriter.

If your client has one of these income streams, please get in touch with your BDM to discuss your case and access our dedicated Enhanced+ underwriting service. 

Repayment options

Criteria for Interest Only loans:

1. Maximum LTV on Interest Only is 80% with maximum of 85% overall (subject to maximum loan size / LTV above);
2. We will accept Downsizing via Sale of Property where Interest Only exposure is capped at 60% LTV, and must have a minimum of £250,000 equity on completion in London/South East regions, and a minimum of £150,000 equity on completion in all other regions. A combination of repayment vehicles (including downsizing via sale of mortgaged property) can be accepted. Downsizing will still be capped at 60% and have the minimum equity requirements however, additional repayment vehicles can be used up to a maximum LTV of 80%. Any additional borrowing must be on a capital repayment basis (subject to maximum loan size/LTV above.
3. All other acceptable forms of repayment would need to match current lending policy. This includes:
   • Endowment Plan(s) using the midpoint projection
   • Pension Plan(s) where term cannot exceed retirement age
   • PEPS
   • Investments (ISA's / Bond's / Unit Trusts)
   • Share portfolio where current value of portfolio is sufficient to repay loan
   • Sale of investment property

Find more information on our dedicated underwriting service, by visiting our Enhanced+ page.

Where it has been established that the property is to be purchased at a discounted price then we can consider lending 100% of the purchase price subject to valuation confirming that LTV based on open market value would not exceed 95%.

Additional borrowing above the discounted purchase price can only be considered subject to funds being for home improvements only and LTV not to exceed 95% of open market value. No capital raising for repayment of debt is allowed.

The acting solicitor must ensure that defective title indemnity insurance is arranged where a discounted purchase price is taking place. This protects the Society from future claims under the Insolvency Act.

The current occupant of the property would be expected to move out of the property. We will not accept a sitting tenant and the property must be vacant on completion with no charges /restrictions from previous owner remaining.

Maximum loan is £500,000.

First Homes is a government-backed scheme in England that enables eligible first-time buyers to purchase a home at a discount of at least 30% below its full market value. The discount remains attached to the property and must be passed on to future eligible purchasers when the property is sold. Local authorities may apply a larger discount of up to 50%.

Each First Home is independently valued to ensure the discount is applied to the market value. For new-build First Homes, the purchase price after the discount has been applied must not exceed £250,000 (£420,000 in London), although local authorities may set lower price caps and additional local eligibility criteria. These maximum purchase price limits apply only to the initial first sale of the property under the First Homes scheme. They do not apply to subsequent sales of the property.

• Maximum LTV: 95% of the discounted purchase price
• Properties are typically subject to a Section 106 Agreement, restricting ownership to eligible First Homes purchasers
• Homes are sold at a discount of at least 30% below market value, with the same percentage discount applying to future sales
• An Authority to Proceed issued by the relevant Local Authority will be required
• Further advances may be considered subject to standard LTV restrictions and assessment against the appropriately discounted market value
• Subsequent purchases and remortgages of First Homes properties may be considered where lending is assessed against the discounted market value

For more information, please see the First Homes page, or visit www.gov.uk/first-homes-scheme.

First Step (up to 98% LTV) is a lower deposit mortgage helping your clients get into their first home faster.

• First-time buyers only. In cases where there is more than one applicant, at least one of the applicants must be a first-time buyer.
• The minimum LTV is 95.01% and the maximum is 98%.
• The minimum property value is £101,000.
• The minimum loan amount is £96,000.
• The minimum deposit is 2% or £5,000; whichever is the higher and must come from own resources. Gifted, loaned or deposits provided by a third party will not be accepted.
• Available for purchase applications only.
• New build properties are not acceptable.
• The maximum loan size is £350,000.
• The minimum term is 5 years with a maximum of 35 years.
• Repayment basis only.
• Not available to non-EEA nationals. EEA nationals must have settled status or indefinite leave to remain. No exceptions permitted.
• Portability option available however, no additional borrowing will be permitted above 95% LTV.
• This mortgage cannot be combined with other mortgage products e.g. JMSP, Shared Ownership etc.
• Property LTV restrictions still apply, e.g. max 75% LTV for ex-local authority flats.

See First Step (up to 98% LTV) for more information.

We will no longer accept mortgage applications where the salary paid in a currency other than UK sterling is to be used for affordability purposes.

In addition, we will no longer accept other sources of income that is not UK sterling based i.e. rent received from overseas properties, overseas investments.

Where the loan is interest only or part interest only / part capital repayment we are also unable to accept a repayment strategy that is based on assets that are held outside the UK.

EEA Nationals:

• EU/EEA/Swiss citizens (excluding Republic of Ireland) applying for a mortgage must currently reside in the UK and have settled status. However, if another party on the mortgage is a UK citizen, has a permanent right to reside, or has settled status, then pre-settled status would be acceptable up to 95% LTV.
• We can accept sole or joint applications where both parties have pre-settled status up to a max LTV of 80%.
• Applicants must have lived in the UK for at least 2 years. This can be verified through a credit search that shows their residency on the voter roll or through CAIS information. If neither of these checks can be completed, then we require documentary evidence of living in the UK and 6 months of bank statements.
• Applicants also need to show proof of their settled or pre-settled status by providing a share code, which can be obtained from the Government's website. This code allows us to see their immigration status online.

Non-EEA Nationals:

• Non-EEA applicants may borrow up to 80% of the property value. Applications above 80% LTV, up to a maximum of 95%, may be considered by referral to our underwriters through a Decision in Principle (DIP). To consider lending above 80% LTV, the credit search undertaken by the Society must, as a minimum, show the following:
  • Voters roll history; and
  • One active unsecured or secured credit commitment opened more than 12 months ago, plus one other CAIS record. Please note where there is no voters roll history underwriters have the discretion to accept cases when multiple CAIS records are present.
• Applicants must have lived in the UK for at least 2 years. This can be verified through a credit search that shows their residency on the voter roll or through CAIS information. If neither of these checks can be completed, then we require documentary evidence of living in the UK and 6 months of bank statements.
• Non-EEA nationals must have evidence that they have indefinite leave to remain or enter the UK. This is confirmed through either a residency entitlement stamp in the applicant’s passport and/or visa, or by written confirmation from the Home Office/UK Border Agency.
• Non-EEA applicants who do not have an indefinite right to reside in the UK will only be considered if they have at least 3 months remaining, at the time of application, on a Skilled Worker or Health and Care Worker Visa.
• Enquiries from applicants who hold a Family Visa (partner/spouse route only) are also acceptable, however only applicable on the following terms:
  • Joint applications only.
  • Applicant 1 must have indefinite leave to remain, settled status or hold British Citizenship. Applicant 2 will be the Family Visa holder.
  • The Family Visa holder must be the partner/spouse of Applicant 1.
  • Visa must have at least 3 months remaining at the time of application.
  • Visa holder must have at least 2 years' residency in the UK at the time of application.
  • If Applicant 2 is not the partner/spouse of Applicant 1, we will allow them on the mortgage application, but we cannot use Applicant 2's income, e.g. mother and son application.
• Note: Applicants who hold a dependant visa which is linked to a Skilled Worker Visa will not be considered. A dependant partner or spouse visa granted through the Skilled Worker route is not the same as a Family Visa and therefore does not meet the eligibility requirements.
• Note: All applicants holding a Skilled Worker Visa, Health and Care Worker Visa, or Family Visa will be required to provide their share code along with their Home Office approval letter (or email) at application stage.

If your client has an existing mortgage and wants to borrow more/port their mortgage to a new property they will need to speak to us directly. 

They can do this by:

• Calling us on 0345 601 0014. The team is available Monday to Friday, 9am to 5pm.
• Visiting their local branch. View our branch finder for details of your nearest branch
• Visit our website

We currently do not accept new mortgage applications that require a guarantor. 

The following information is required in support of a mortgage application:

• The Society will initially attempt to identify all customers electronically by using software which checks a series of databases for identification information. This search does not affect your client's credit rating, however in some cases we may find it necessary to request paper identification to prove name and/or address. Where required, any documents can be provided using our document upload facility.
• Applicants must supply proof of residence. Any utility bill, council tax bill, bank statements or mortgage statements are acceptable, provided confirmation sight of the original documents is supplied and they are from within the last 3 months.
• The Society will be required to confirm identity. Acceptable documents include a passport or driving licence photocard.
• Intermediaries are responsible for ensuring that applicant's identity and Proof of Residency are verified as part of the application process.
• Applicants must normally have been resident in the United Kingdom for a minimum period of three years. This can be waived for members of the diplomatic corps, a member of HM Forces, or employees of internationally based companies, providing their family will be resident in the property.

See more information on acceptable ID and residency documents.

The following sources of income are acceptable:

Primary taxable income (100%)

• Basic income
• Private pensions and annuities
• Car allowance
• Pay rise pending (must be within 3 months and employer to confirm)
• Mortgage subsidy (must be permanent)
• Housing allowance
• Additional investment income from rental portfolio (evidenced by accounts/tax assessment/accountants reference)
• London/large city allowance
• Shift Allowance (guaranteed)
• Foster care income (an average of the last 2 years or the latest year if lower will be taken). This will need to be evidenced by a letter from the agency/local authority placing the child. The letter should confirm the income for each of the last 2 years and confirm that the income from the latest year is expected to continue
• Guaranteed overtime and commission are available only if the employee has been with their current employer for at least 6 months and can provide an employment contract, reference, or evidence of continuous payment for the last 12 months

Primary non-taxable Income (100%)

• State Pension/Pension Credit
• Guaranteed for Life DWP
• Maintenance order (CMS/Child Maintenance Service enforceable). If not agreed via court order/CMS agreement a 12-month track record evidenced by bank statements is required.
• Limited Company Director dividends (net of income tax paid)
• Child Benefit - if Y is selected, the latest month's bank statement will be required

Primary taxable income (80%)

• Regular overtime/commission (must have been with current employer for a minimum of 6 months, and an average of the last 3 months will be taken, providing it is reflected in the YTD figure on the most recent payslip).
• 80% of the annual figure is to be keyed as primary taxable income.
• Our underwriters have the discretion to reduce the amount included in the affordability assessment if we are unable to gain comfort over the sustainability of the income.

Secondary taxable income (50%)

• Regular bonus can be considered using an average of the last 3 months' payslips, providing this is reflected in the year-to-date figure.
• Periodic bonus/commission can be considered using an average of the last 2 years' P60s.
• Second job with at least 12 months' service
• Territorial Armed Forces pay

Secondary non-taxable income (50%)

• PIP (The borrower receiving the benefit must also have earned income which is greater than the PIP)

We will not consider:

• Universal credit
• Unemployment benefit / income support
• Housing Benefit
• Social security payments that are not guaranteed for life (DLA etc.)
• Seasonal work
• One-off payments
• Gratuities not sighted on payslips
• Bursaries, scholarships or apprenticeships 
• Investment or Trust Income that is not guaranteed
• Income derived from self-invested personal pensions
• Carer's allowance

Where a reduction in income is anticipated in the near future then the impact of this must be considered for affordability purposes. This would normally include applicants who are close to retirement, those that are on or due to go on maternity leave or those that are looking to reduce working hours.

We would expect that any future changes to income are confirmed on the application we receive so that this can be taken into consideration by our underwriters.

Where applicants are on or due to go onto paternal leave then we will require details of the date they are expected to return to work, the basis on which they will return (i.e. Part time / Full time) and the new salary on return to work. This will need to be verified by the applicants employer if they intend to return under different terms.

Accountants certificates will only be accepted subject to the following criteria:

• Must be the Society’s approved form and be completed by an appropriately qualified individual.
• The certificate must show the accountant’s details and their qualification(s).

Acceptable accountant bodies:

• Institute of Chartered Accountants (ICA)
• Association of Chartered Certified Accountants (ACCA)
• Association of Accounting Technicians (AAT)
• Association of Authorised Public Accountants (APA)
• Association of International Accountants (AIA)
• Chartered Institute of Management Accountants (CIMA)
• Chartered Institute of Public Finance Accountants (CIPFA)
• Institute of Financial Accountants (IFA)
• Association of Taxation Technicians (ATT)
• Certified Public Accountants Association (CPAA)
• Chartered Institute of Taxation (CIT)

For all forms of additional income which is being taken into account, documentary evidence will be required.

Maximum age at the end of the loan term is 80.

LTV limits vary based on the repayment vehicle selected. Documentation requirements also vary based on the repayment vehicle selected as outlined below:

Repayment types that will not be considered are:

• Pure interest only with no repayment vehicle
• Lump sum payments during term other than pension
• Sale of other assets
• Inheritance

Joint Mortgage Sole Proprietor (JMSP) applications are acceptable. The scheme essentially allows 1 occupying borrower to be supported by income from an additional borrower who will be party to the mortgage but not be named on the title deeds. Loans will be considered on the following basis in addition to standard requirements:

• Available for residential properties only. Not available for BTL applications
• Maximum of 2 borrowers
• Minimum loan amount of £25,000 up to a maximum of £3,000,000 (subject to product terms and conditions)
• Maximum LTV 95%
• Affordability can be supported entirely by the non-occupying borrower's income 
• Loans will be available on a repayment basis only
• For remortgages, debt consolidation is not permitted. Any additional borrowing over the outstanding balance must only be for the benefit of the main borrower/proprietor.
• Minimum age for the borrower is 18 years

The non-occupying borrower must obtain independent legal advice given the nature of the product and joint and several liability for the debt while having no ownership rights over the security property.

Please note that Affordability Boost is available on JMSP products. To benefit from the enhanced affordability, please select both JMSP and long-term fixed 69 months or more option when applying. 

We've upgraded our Large Loan proposition. See Enhanced+ for more information.

Newcastle Building Society has a partnership with the UK's leading conveyancing panel management specialist LMS. LMS provide conveyancing services to the Newcastle supporting the application process for broker customers. Where our products are offered on a fees assisted basis (where a fees assisted legal transfer is included in the features of the product) LMS will provide the conveyancing service. In addition LMS are also able to provide a low cost fee paying service. For details of the costs involved please refer to our conveyancing service page.

Should your client wish to use their own solicitor/conveyancing firm in the purchase or re-mortgage of their home, it is important to note that included in the Society's Panel Acceptance criteria is the requirement for multiple partners. Sole Practitioners are not accepted to our panel and any request will be rejected. Where sole practitioners are instructed they may act for your client however we will instruct LMS to act on behalf of the Society. 

In order to provide this service there will be an additional charge to your client and an outline of these costs can be found on Separate Representation (England and Wales).

If the proposed conveyancing provider is declined a customer can select any other solicitor, including LMS appointed firms from the panel without incurring additional Society fees.

Lending into Retirement

Lending into Retirement is where the Borrower is not retired at the point of loan origination, but there mortgage term extends beyond an applicants declared retirement age or their 70^th birthday.

Where any element of the loan is on Interest Only, the maximum mortgage term will be based on the oldest applicant turning 80.

Where the mortgage term extends into retirement (lower of either 70 or declared retirement age), the following will apply:

• Retirement is more than 10yrs away:
  Current income used for affordability purposes however, suitable evidence that the applicant is currently paying into a private/employer pension plan must be provided. This can include payslips evidencing pension contributions or a pension statement (latest annual statement must be provided).
• Retirement is less than 10yrs away:
  Affordability will be based on the lower of the current income or future pension income. Evidence of future pension income will need to be provided in the form of the latest annual pension statements showing projected figures.

However, if the term takes the applicant beyond the age of 80, the following approach will be used to assess income (capital repayment only):

If more than half of the mortgage term is before retirement age (70 or declared retirement age if lower), we will use their current earned income for affordability. Evidence that the applicant is currently paying into a private/employer pension plan will be required.

If more than half of the mortgage term is after their retirement age (70 or declared retirement age if lower), we will require evidence of both current earned income and projected retirement income and affordability will be based on the lower figure.

Alternatively, a Plan B approach can be considered for all the above where there is suitable justification to do so. This might include an understanding of the plan such as the below and we may seek to understand whether the timing of this could be brought forward should circumstances require:

• Pensions/investments. Please note we can only consider the 25% tax free lump sum from self-invested personal pension.
• Sale of another property. For example a buy to let or second home.
• Downsizing of the mortgaged property. Please note we are only able to accept this as a suitable Plan B for an interest only mortgage and we may seek to understand whether the timing of this could be brought forward should circumstances require.

Self-employed

Lending into retirement is assessed on a case-by-case basis and will depend on the nature of the business and the applicant’s role within the business. Underwriters will need to be satisfied that the same level of income can continue to be generated later in life.

Lending in Retirement

Lending in retirement is where the borrower is retired at the point of loan origination.

Affordability will be assessed solely on existing retirement income.

Future changes to retirement income may also need to be considered and should income reduce then we would need to be able to demonstrate that the loan remains affordable throughout the term.

The maximum mortgage term will be based on the oldest applicant turning 80 when any element of the loan is on Interest Only.

Let to Buy is where the borrower is not redeeming the mortgage held on their existing property and is looking to let this out whilst purchasing a new property as their main residence.

Loans will be considered on the following basis:

• We obtain consent to let from the existing lender or a copy of the new BTL offer/KFI.
• We obtain evidence from 1 registered ARLA / NLA letting agent of expected rental income.
• The expected rental income must pass our rental stress test. The rent must cover at least 145% based on the mortgage pay rate on an interest only basis or the 'loaded' monthly payment. If there is a shortfall, this needs to be added as a commitment.

We will also consider applicants who are looking to remortgage a property already mortgaged to Newcastle Building Society onto one of our Buy to Let schemes and purchase a new residential property to be mortgaged to ourselves.

Minimum and maximum loan amounts are product specific. Please refer to the full product details for confirmation.

The minimum mortgage advance is £10,000 (or £1,000 for further advances).

The maximum mortgage advance is £3,000,000, or £3,500,000 for Enhanced+ products.

The Society provides mortgage finance for the following purposes:

• Purchasing a residential property for owner occupation, including where the property will be occupied by a family member. Under normal criteria, lending is capped at 95% loan to value (except First Step 98%), inclusive of any fees.

Remortgages

For remortgages, the maximum loan to value depends on the reason for any additional borrowing.

• Capital raising for home improvements, marital buy-outs and Full Help to Buy Equity Loans Repayment: The maximum loan to value is 95%. For home improvements, estimates are not required where the loan to value is up to 80%. Where the loan to value is above 80%, the underwriter will decide whether estimates are required. For remortgages where the Help to Buy Equity Loan is being repaid in full, the maximum loan to value is also 95%.
• Capital raising for any other purpose, including debt consolidation: The maximum loan to value is 80%. Additional borrowing is not permitted for business purposes, currency speculation or repaying gambling debts. Capital raising to repay a second charge is max 80% LTV.
• Remortgage fees: Fees may be added to the loan if the final loan to value does not exceed 95%, subject to product terms.
• Broker advice fees: Broker advice fees cannot be added to the loan.

Minimum repayment term is 2 years with a maximum loan term of 40 years.

Standard residential policy

Enhanced+ policy

 Please refer to specific product details for maximum LTV

• Max LTV's are product specific and may vary from time to time.
• *Additional criteria will apply for First Step >95.01% LTV lending please see First Step (Up to 98% LTV) criteria.
• Remortgages for capital raising purposes including debt consolidation are not permitted on a mortgage above 80% loan to value. Capital raising is described as anything other than the replacement of a home purchase loan or a loan for the purposes of home improvement.

In order to obtain an illustration on behalf of your client, please source from either Trigold or Mortgage Brain. Currently the Society is unable to produce an illustration for your client.

A New Build property can be classed as i) a property being occupied for the first time in its current state ii) A refurbished property (existing residential unit(s) being occupied for the first time it in current state iii) A converted property (re-development of non-residential unit(s) to residential unit(s) being occupied for the first time in its current state.

Maximum permitted LTV will be dependent on a) the presence of Builders Incentives and b) whether the property is a new build house or new build flat as follows:-

The maximum starting ground rent on all new build properties with a leasehold tenure is limited to 0.1% of the property value.

Ground rent must be reasonable at all times during the lease term. For example, ground rent escalation should be linked to RPI (Retail Price Index) or a similar index, and unreasonable multipliers of ground rent will not be permitted, for example doubling every 5, 10 or 15 years.

New Build Houses

The maximum loan to value for new build houses is 95%.

The loan amount plus any deposit/cashback incentives and product fee will be capped at 95% which means the borrower will still need to contribute a deposit from their own resources.

Where incentives exist, we allow up to 5% incentives including deposit contributions, cashbacks, legal costs, stamp duty without deductions from the purchase price. Costs that don't have a material impact on the value of the property such as white goods, carpets, curtains are not treated as incentives.

New Build Flats

The maximum loan to value for new build flats is 90%. 1 bed flats maximum 80%.

The loan amount plus any deposit/cashback incentives and product fee will be capped at 90% which means the borrower will still need to contribute a deposit from their own resources.

Where incentives exist, we allow up to 5% incentives including deposit contributions, cashbacks, legal costs, stamp duty without deductions from the purchase price. Costs that don't have a material impact on the value of the property such as white goods, carpets, curtains are not treated as incentives.

• The UK Finance Disclosure form must be completed by the developer and presented to the valuer on site. If this is not seen a nil value is returned on the valuation form.
• For LTV calculation purposes we will accept up to 5% of the purchase price for Builders Incentives.
• For clarity, an incentive is defined as any cash or goods received from the builder or developer.

All New Build properties must have a home warranty scheme applied. The acceptable schemes to the Society are:

• NHBC
• Build-Zone
• LABC
• Zurich Municipal
• HAPM
• Premier Guarantee
• BLP
• Protek
• AHCI Advantage
• ICW (International Construction Warranty)
• Checkmate Castle 10
• Checkmate Knight 10
• Aedis Homeproof New Build 10 Residential Warranty
• Aedis Homeproof New Build 10 Residential Warranty for Self Build
• Professional Consultants Certificate (only up to 15 dwellings in any development and retrospective PCCs not acceptable)

Please note that we do not accept assignable contracts in any form.

Maximum number of applicants is 2. 

Our mortgage offers are valid for 6 months (9 months for New Build properties) from the date of issue. In the event that completion does not take place within 6 months (9 months for New Build) a revised product must be selected from the current range in order to continue. Otherwise the application will need to be cancelled. 

For any enquiries, please contact our team by email at intermediary.lending@newcastle.co.uk or telephone 0345 602 2338. The team is available Monday to Friday, 9am to 5pm.

Applications will be referred to our underwriters for review in the following circumstances:

• 1 or more pay day loan taken out in the last 6 months
• 2 or more in the last 12 months

Where there is track record of applicants taking pay day loans frequently over the 12 month period then the underwriters reserve the right to decline the application.

Piece workers can be considered where an established track record exists which can be evidenced by receipt of the last 2 years P60s.

If your client has an existing mortgage and wants to borrow more or port their mortgage to a new property, they would need to speak to us directly by calling 0345 601 0014. The team is available Monday to Friday, 9am to 5pm.

The Society can accept the following POA documents -

• ORDINARY POWER OF ATTORNEY (also known as General or Limited Power of Attorney) (OPA)
• ENDURING POWER OF ATTORNEY (EPA)
• LASTING POWER OF ATTORNEY (LPA) for Property and Financial Affairs
• COURT OF PROTECTION ORDERS (COP)
• CONTINUING POWER OF ATTORNEY - This is the Scottish equivalent to the Lasting Power of Attorney for Property and Financial Affairs.

We can also accept the Government access code beginning with V to view electronic LPAs.

The document must be valid and complete and it must contain specific provisions granting the attorney the power to borrow mortgage funds on behalf of the donor. Please note that although the types of POAs noted above and some COPs grant the power to buy and sell property, this does not include the power to borrow mortgage funds as standard, so that particular power will need to be specifically noted in the document.

When submitting a mortgage application with any of the above attached, the Registration of Power of Attorney (Court of Protection Deputyship Order) form must be completed in full. 

We will consider loans from applicants currently in a probationary period. This is normally subject to a 12 month track record in the same line of work.

For applicants employed within the Police Force will normally have a minimum 2 year probationary period. We will accept loans where the applicant has been employed in role for at least 12 months.

The Society pays procuration fees for new applications and product transfers. It does not pay fees for further transactions with existing customers including further advances or porting to a new property.

Fees are paid to the Club, Network or Principal within 28 days of completion of the advance.

If you’re looking to switch a clients' deal or secure a new rate, our product transfer page sets out everything you need.

For contracted applicants we will require a copy of the applicants current contract and it must have at least 1 year still to run.

Where applicants are self employed then we require 2 years trading accounts or last 2 years HMRC Tax Assessments and corresponding Tax Overview Forms.

For applicants who are coming towards the end of their professional career and especially for sportspersons, documentary evidence will be required to establish how they intend to support the mortgage post career.

There is no restriction on age or term other than normal policy guidelines.

All properties must have a minimum purchase price or valuation (whichever is lower) of £50,000.

The Society will make advances on any acceptable security in England, Scotland & Wales.

We would not accept properties where the unexpired lease has less than 85 years remaining on completion.

Properties in Scotland still require a transcript of existing report from the applicant on the proviso that the valuer is on our panel and the transcript is completed on NBS papers. Alternatively, we will instruct our panel valuers.

The tenure of acceptable properties will be freehold or leasehold in England and Wales, or their Scottish equivalent.

All properties must be assessed by a suitably qualified valuer with sufficient professional indemnity cover. All valuation instructions (with exception of Scotland) will be made by the Society via our nominated panel. Third party instructions are not acceptable.

We accept applications on a repayment, interest only or part interest only basis.

Replacement properties are now to be keyed as a new application. Once submitted, please call 0345 602 2338 in order for us to link to your previous application. The team is available Monday to Friday, 9am to 5pm.

Loan must be on a repayment basis.

We will consider lending 100% of the discounted purchase price as indicated in the offer agreement between tenant(s) and Local Authority / Housing Association.

We will also consider lending additional funds up to a maximum of 80% LTV of open market value subject to funds being used solely for home improvements.

It will be a requirement that estimates for the works to be carried out are received prior to us instructing the valuation. We will consider lending up to £5000 maximum upfront to fund immediate home improvements as long as any additional funds are retained until all works completed and a reinspection confirms.

It will be a condition of the mortgage that any additional funds in excess of the discounted purchase price will still rank higher than the Local Authority's charge on the property.

Under no circumstances will we lend additional funds for capital raising including payment of fees to any solicitor or third party.

Only the applicants named on the Right to Buy offer agreement can be named on the mortgage.

The Society's charge should always be registered as first priority ahead of any Local Authority.

The valuer must confirm that there is a ready and sustainable demand for the property to be mortgaged. 

Flats will be considered as long as adhere to current policy i.e. no high rise flats, maximum 5 storeys. Note that maximum LTV would be 75% of the open market as per our standard criteria for ex local authority flats.

Further Advances will be considered subject to all funds must be used for home improvements within the discount period.

Second homes / holiday homes must be strictly for the sole use of the borrower and dependent family members and must not be let. The maximum loan to value for such properties is 75% and the applicant's financial status must be sufficient to cover both loans where we will deduct the applicant's main mortgage as a monthly commitment. Maximum loan is £500,000.

• Self-employed applicants must have been trading for a minimum of 2 years to accurately assess track record within chosen line of work. 2 full years' finalised figures must be provided as proof of income (exception is borrowers taking our 1 year Self-employed product). The most recent figures must be no more than 18 months old.
• Self-employed applicants' income will be assessed as follows:

All self-employed income will be assessed and verified by underwriters as part of the application process. Care will be exercised where:

• Net profit has fallen from the previous year
• Drawings are exceeding net profits over a sustained period
• There are large variations between the net profit figures

If dividends have been drawn from retained profit, this will not be acceptable, and the dividend income will be excluded from the income assessment.

If net profits have fallen in consecutive years (showing a downward trend in the business which is expected to continue), or the latest year’s profit has reported a loss, then that income will not be accepted and will be excluded from the income assessment.

• Borrowers must be a resident in the UK
• We only consider lending under this scheme in England
• Maximum household income level is £80,000 or less outside of London and £90,000 or less in London
• Maximum loan is based on affordability. Maximum loan amount is 95% of the borrower's share without incentives
• Maximum LTV will be 90% of the borrower's share if an incentive is being offered
• The minimum share of the property to be purchased is 25% and the maximum is 75%
• The borrower must contribute at least 5% deposit from own funds or via family gift
• Property must be Leasehold and loan must be on a repayment basis
• Borrowers must not have any interest in another property anywhere else in the world
• Borrowers cannot sublet their Shared Ownership home
• Standard concentration limits apply
• Should the property be down-valued when valuation obtained for mortgage purposes, purchase price will need to be re-negotiated and loan amount will be reduced accordingly
• For affordability purposes, the rental payment and any ground rent and service charges need to be confirmed
• If the property is new build, standard new build policy applies including aspects relating to suitable warranties
• Incentives defined in standard new build policy are acceptable up to a maximum of 5% of the purchase price. If the incentive is greater than 5%, we will not be able to accept any of the incentive
• The lease to be entered into by the borrower must be the current Homes England model shared ownership lease, which can be found on the government’s website. The lease must contain the fundamental clauses relating to: alienation, mortgagee protection clause, rent review, staircasing; and termination.
• The fundamental clauses must be in the same form as those contained in the current Homes’ England model shared ownership lease.
• The lease must contain a mortgagee protection clause which shall provide that if a mortgagee in possession wishes to sell the property, it has the choice of either (a) assigning the lease to the buyer as it is or (b) staircasing to 100% and then assigning.
• The Society does not accept properties that do not allow staircasing to 100% ownership.
• Properties that allow 100% staircasing will only be acceptable if they are not restricted to certain qualifying individuals on re-sale. The arrangement must be through a non-profit or an acceptable for-profit registered social landlord (including local authorities) as landlords. We accept the following for-profit registered social landlords as detailed below:

• All social landlords must be regulated by the Regulator of Social Housing (RSH) and authorised to provide housing under the Shared Ownership and Affordable Homes Programme (SOAHP) 2016 to 2021 and Shared Ownership homes provided through the Affordable Homes Programme (AHP) 2021 to 2026.
• Memorandum of Sale from the Housing Association required for all cases (reservation form or UK DIF/CML form cannot be accepted in its place).

Remortgage Criteria:

• No additional borrowing unless this is to staircase;
• Staircasing must be for a minimum of 5% of the property's value;
• Borrowers cannot purchase more than 75% share of the property unless they are purchasing the final share;
• A physical valuation will be required on all applications;
• If this is a like for like remortgage, a letter from the Housing Association will be required to confirm up to date rent and ground rent/service charge; and
• If staircasing, the Memorandum of Sale will be required from the Housing Association confirming the new share, rent and ground rent/service charge (reservation form or UK DIF/CML form cannot be accepted in its place).
• Please note: for 100% shared ownership staircasing, the case is not eligible for LMS fees assisted legal services or the LMS customer paid option due to the broader legal work required. In this scenario the customer must choose their own solicitor from our panel.

Further Advance Criteria:

• A Further Advance can only be agreed where funds are to be used to staircase;
• Staircasing must be for a minimum of 5% of the property's value;
• Borrowers cannot purchase more than 75% share of the property unless they are purchasing the final share;
• A new re-inspection report will be required in all instances to ascertain the current value of the property. This will be at the cost of the borrower;
• A Solicitor will be required to act; and
• Memorandum of Sale will be required from the Housing Association confirming the new share, rent and ground rent/service charge (reservation form or UK DIF/CML form cannot be accepted in its place).

The deposit must come from the applicants' own resources. Gifted deposits from parents and other close family relatives will be allowed subject to there being no repayment vehicle in force and the underwriter being happy with the arrangement. In all instances we will require signed copy of our Gifted deposit form. This form should be sent with supporting information when you apply for the mortgage.

Where the source of the deposit is confirmed as 'savings' the Society reserves the right to see documentary evidence of the deposit prior to completion. Crypto currencies such as BitCoin are not considered an acceptable source of deposit.

Where the source of deposit is from re-mortgaging an existing property then we must be provided with full details of the increased loan and rate and whether the loan is supported by rental income.

Where the deposit is being funded from the applicants’ business, we do not accept directors loans where funds are being lent from the business. Repayment of a directors loan in respect of monies owed to the applicants may be considered.

With effect from 1 February 2026 our Standard Variable Rate is 6.31%.

We can accept a discounted sale to a tenant from a landlord on the following basis:

• Allow loan amounts of up to 100% of the discounted purchase price subject to the overall LTV not exceeding 95% of the open market value.
• Tenancy must have been in place for at least 1 year.
• Conveyancer to ensure that an Insolvency Act Indemnity Insurance is put in place on completion.

• Proposed security is attached to a property already owned by the applicant or a family member.
• Annexes that will not be used by the applicant or a family member or those that will be used for commercial gain.
• "Flying-freehold" - if more than 25% of property involved.
• Houses with rooms let or likely to be let to several tenants where premises have not been converted or constructed for this purpose.
• Unmodernised flats and flats which are above commercial premises. Exceptions can be made for exclusive developments and certain areas of larger British cities where the valuer has confirmed that there is a ready and sustainable demand.
• Studio flats are normally unacceptable but may be considered in prestigious developments where a ready and sustainable demand exists. This is subject to valuers comments.
• Large old unmodernised houses where accommodation is in excess of the applicant's requirements, particularly where there are attics and/or basements.
• Back to back houses.
• Council houses built in a non-traditional way, i.e. prefabricated reinforced concrete.
• Ex Local Authority flats where LTV exceeds 75% (no LTV restriction in Scotland) and must not exceed 5 storeys or have deck/balcony access.
• Freehold flats with the exception of 'Tyneside Flat' style or where the application will own a share of the freehold with a management company in place to oversee the maintenance of the building.
• Houses with restrictions to ownership (e.g. retirement flats, restrictions on occupation to local inhabitants). This list is not exhaustive and any application where there is a restriction should be referred to an underwriter.
• Properties with any agricultural restrictions.
• Houses under shared ownership / equity where a sales restriction / charge will remain on the property despite the borrower owning a 100% share.
• Mobile homes or caravans.
• Houseboats.
• Uninsurable properties e.g. due to flood risk.
• Uninhabitable properties (e.g. no kitchen/bathroom/roof/mains services not connected).
• Properties with invasive plants (i.e. Japanese Knotweed) within the immediate curtilage of the property.
• Flats with a Shared Balcony (Deck Access).
• Timber framed properties are acceptable if constructed with an outer skin of brick/stone or rendered blockwork: other types of outer skin such as timber cladding are not acceptable. Please refer to lender for further guidance.
• Converted churches
• Grade 1 listed buildings
• Properties which fall under the Discount Market Scheme

Alternative or additional fees may be charged for special schemes, please refer to specific product pages for details.

Please note, for remote properties, further charges may apply for reasonable travel expenses incurred by the valuer in order to carry out an inspection.

The report is carried out for society purposes only, and a copy will therefore not be issued. Valuations are instructed as part of the application process. These will only be put on hold in exceptional circumstances and will be considered on a case-by-case basis.

^*All outlined fees are inclusive of VAT.

Our panel of regional valuers is highly experienced and we're very confident that the valuation they provide will be an accurate reflection of its true market value.

This means we're unable to accept any appeals against the valuation of the property.

If your client has an unusual property or you have any other concerns prior to application then please contact our Intermediary Support team or your BDM.

We're committed to supporting customers in vulnerable circumstances. If you have a customer who needs additional support, please let us know by disclosing this during our online application.

Read our supporting vulnerable clients page for more information on identifying vulnerable clients and advice on how to support them.