Newcastle Building Society

Newcastle Building Society is a regional mutual building society, owned by its members rather than shareholders, that has been helping local people buy homes for over 160 years¹. Its business is built around two things: mortgages, including a 98% loan-to-value deal for first time buyers, and savings, including a range of cash ISAs and a mobile savings app². It also introduces customers to a separate financial advice firm for pensions, investments and insurance, and it operates a branch network with a flagship branch at Newcastle Monument, where mortgage appointments can be held face to face⁴.

Newcastle Building Society is a regional building society offering mortgages and savings, and it lends across England, Wales and Scotland, with separate mortgage conditions published for Scotland⁶. Its savings accounts include ISAs and the Newcastle Cash Lifetime ISA, and money held with it is protected by the Financial Services Compensation Scheme up to £120,000, a limit shared with its Manchester Building Society brand⁷. This page explains what Newcastle offers, how its lending rules work, how to apply, and where to get help if something goes wrong.

Mortgages from Newcastle Building Society: the main types

Newcastle Building Society lends to first time buyers, home movers and people remortgaging, and it keeps a team of qualified mortgage advisers who give free advice with no expectation that you proceed². Its range covers fixed rate, tracker and variable rate mortgages¹³. A fixed rate holds the interest you pay for a set period, often two to five years or longer, while a tracker follows the Bank Rate, so the payment moves when the rate does¹⁴. The society's product filters let you narrow the range by fixed rate or base rate tracker¹⁵.

The lending sits on a published policy that sets the outer limits of what it will do. Standard mortgages run from a £10,000 minimum advance up to £3,000,000, or £3,500,000 on its enhanced plus products, over terms of 2 to 40 years¹⁰. How much you can borrow depends on income and the size of the loan relative to the property's value: under the standard policy the society lends up to 5 times gross income where the loan is 90% or less of the property's value and income is at least £35,000, and up to 4.49 times income in other cases¹⁰. The maximum loan-to-value also steps down as the loan gets bigger, from 95% on loans up to £500,000 to 65% on loans between £2,000,001 and £3,000,000¹⁰.

These figures come from the society's residential lending policy¹⁰. All residential properties must be worth at least £50,000, and lending approval is always subject to an affordability review and the society's lending criteria¹⁰. The society's own affordability calculator, aimed at first time buyers and homeowners remortgaging with it, works from the amount you want to borrow, the property value or deposit, and the term¹⁷.

As with any mortgage, the security is your home: Newcastle's own warning, carried across its mortgage pages, is that your mortgage will be secured on your home and your home may be repossessed if you do not keep up repayments¹⁸.

Specialist routes: First Step, shared ownership, Right to Buy and family purchases

Newcastle's headline product for first time buyers is the First Step mortgage, which lets first time buyers borrow up to 98% of the home's value with a minimum non-gifted deposit of £5,000¹⁹. The policy behind it is precise: the minimum deposit is 2% or £5,000, whichever is higher, and it must come from the borrower's own resources, with gifted, loaned or third party deposits not accepted¹⁰. The loan-to-value band runs from 95.01% to 98%, the minimum property value is £101,000, loans run from £96,000 to a maximum of £350,000, and the term is between 5 and 35 years¹⁰. First Step is available on 5 year mortgages only, excludes new builds, and is for purchase applications only¹⁴. In joint applications at least one applicant must be a first time buyer¹⁰.

Beyond First Step, the society supports several assisted and affordable-ownership routes:

• Shared ownership: borrowers can buy a share of up to 75% of the property, and must contribute at least a 5% deposit from own funds or via a family gift¹⁰.
• Right to Buy: lending on a repayment basis only, with a maximum loan of £500,000¹⁰.
• First Homes: properties sold to first time buyers at a discount of at least 30% against market value (local authorities may apply discounts up to 50%), with the first sale after the discount capped at £250,000, or £420,000 in Greater London¹⁰.
• Family purchases at a discounted price: maximum loan £500,000¹⁰.
• Joint Mortgage Sole Proprietor: one borrower on the mortgage but not on the title, loans from £25,000 to £3,000,000, maximum 95% loan-to-value, repayment basis only, maximum two borrowers¹⁰.

New build properties are accepted, but the society has rules on leasehold: a minimum lease term of 85 years on new builds including shared ownership, starting ground rent limited to 0.1% of the property value, and new build incentives (deposit contributions, cashbacks, legal costs, stamp duty) allowed up to 5%¹⁰. It also publishes a list of acceptable new build warranty schemes, from NHBC and LABC through to Professional Consultants Certificates¹⁰. First time buyers can also use the society's First Time Buyer Coaches, who help with deposit savings, affordability, a Decision in Principle and guides and tools¹.

Buy-to-let and second homes: how Newcastle lends on them

Newcastle offers buy-to-let mortgages, but only through mortgage brokers, not directly¹¹. Its lending policy sets the shape of this lending: buy-to-let properties must have a minimum purchase price or valuation of £75,000 and a minimum loan of £25,000¹⁰. Where the society already holds the property and rental income is not needed for affordability, the rent received must cover the current mortgage payment by at least 145%¹⁰. Applicants who already hold one or more investment mortgages can be considered up to 95% loan-to-value, subject to satisfactory evidence of how those loans have been conducted¹⁰. A let-to-buy route exists too, where the rent on the home being let must cover at least 145% of the mortgage payment¹⁰.

Second homes and holiday homes are treated differently: they must be strictly for the sole use of the borrower and dependent family members, must not be let, and the maximum loan-to-value is 75%¹¹. If you already have a Newcastle mortgage and want to let the property it is secured on, you must obtain the society's consent first²⁰.

The society's buy-to-let lending is governed by its own buy-to-let mortgage conditions, issued separately from its general mortgage conditions⁶. As an example of how its buy-to-let products are structured, one of its two year fixed rate buy-to-let products allows 10% overpayments per annum, with loan amount ranges that vary by loan-to-value: £50,000 to £1,000,000 at 70%, £50,000 to £750,000 at 75%, and £50,000 to £500,000 at 80%²¹. Current rates and product details are on the society's own site.

Who can get a Newcastle mortgage

The society's lending policy sets out who can apply. Applicants must be at least 18, with a maximum age of 78 at the time of application¹⁰. There is no maximum age at the end of the term where the loan is on a capital repayment basis, but the society will not lend beyond the age of 80 if any element of the loan is interest only¹⁰. A maximum of two applicants is allowed, and applicants must normally have been resident in the UK for at least 3 years, though this can be waived for HM Forces and employees of internationally based companies whose family will be resident in the property¹⁰.

Credit history matters, and the policy is firm on several points¹⁰:

• Bankruptcy, sequestration, an IVA or a DRO must have been discharged over 3 years ago; anything less is declined.
• Active debt management leads to a decline, as does debt management settled within the last 12 months.
• Any unsatisfied CCJ or default, irrespective of amount, is normally declined.
• Guarantors are not accepted on new mortgage applications.
• Salary paid in a currency other than UK sterling cannot be used for affordability, nor can non-UK income sources or, for interest only loans, a repayment strategy based on assets held outside the UK.

Deposits normally come from the applicant's own resources, though gifted deposits from relatives may be allowed depending on individual circumstances¹¹. Where the applicant has had a previous mortgage, proof of payment for the preceding 12 months is required¹¹. Some of the society's mortgages need only a 5% deposit, and it also has assisted mortgages for those whose family or friends can help¹⁹.

Interest only lending is possible but tightly constrained. A downsizing strategy is accepted where interest only exposure is capped at 60% loan-to-value, with minimum equity on completion of £250,000 in London and the South East, or £150,000 in all other regions¹⁰. Savings and investments can support an interest only repayment strategy, assessed on 100% of cash savings and 75% of non-cash savings and investments, and a share portfolio qualifies where 75% of its current value is enough to repay the loan¹⁰.

Valuation and conveyancing: how the charges work

Every Newcastle mortgage needs a valuation of the property you are buying, to confirm it is worth what you have agreed to pay⁵. The fee is banded by the property's value and, at the time of the society's published fee schedule, is free for properties valued up to £250,000¹⁰. Above that, the fee rises in steps, as set out below. The same figures appear on the society's valuation process page²².

A drive-by valuation, where the surveyor assesses the property from outside, costs £88.92¹⁰. One point worth knowing: the valuation is for lending purposes only and is shared with the society, not with you, so it is not a substitute for your own survey of the property's condition²².

For the legal work, Newcastle is in partnership with Legal Marketing Services (LMS), a conveyancing panel management specialist²³. Where a product is offered on a fees assisted basis, meaning a fees assisted legal transfer is included in the product's features, LMS manages the conveyancing service through one of its appointed firms²³. Whether a product includes this depends on the individual deal, so check the product features or ask the mortgage team. You can find more on the legal side of buying in our guide to buying a home.

How to apply for a Newcastle mortgage

Newcastle does not currently accept mortgage applications directly through its online system¹¹. Instead the process starts with a Decision in Principle: you book an appointment with the mortgage team, who review your affordability to see how much you could borrow². The Decision in Principle is valid for up to 90 days¹².

The credit check at this stage is a soft search, which shows as an enquiry on your credit file but does not affect your credit score²⁴. Newcastle's lending policy confirms the footprint: applicants are credit scored at Decision in Principle stage, leaving a soft footprint, and a hard footprint is left only if the case proceeds to a full mortgage application¹⁰. Because an affordability check is run on your current income and outgoings, you need to have all of your income and outgoings to hand for the appointment²⁴.

The full mortgage appointment is held with one of the society's advisers, either over the phone, via video call or face to face in its Newcastle Monument branch⁵. You will need payslips, proof of address and proof of identity⁵. You can arrange an appointment by completing the online form on the society's site or by calling the mortgage team, with lines open Monday to Friday 9am to 5pm¹⁴. For further advances on an existing Newcastle mortgage, the number to arrange a call with a mortgage advice coordinator is 0345 606 4488¹⁰. Our guide to mortgages explains the steps that apply with any lender.

Switching deals and moving home as an existing customer

If your Newcastle deal is ending, the society offers exclusive rates for existing customers, and most people can switch to a new mortgage deal online in a few clicks if they feel they do not need advice²⁵. Those who want advice can book an appointment with the society's mortgage advisers instead²⁶.

If you are moving house, you may be able to take your mortgage with you. Newcastle calls this porting: you apply to move your existing mortgage to the new home, and you can switch all or part of your mortgage, or switch and borrow more if needed¹⁸. The alternative is to move lender, in which case Newcastle advises checking with your current lender whether there are any charges for repaying your existing mortgage early¹³. Home movers working with the society get one dedicated point of contact throughout the mortgage journey¹³. The standard warning applies to ported mortgages as to any other: your mortgage will be secured on your home, which may be repossessed if you do not keep up repayments¹⁸.

Savings accounts and the savings app

Newcastle offers a range of savings accounts, and online account holders can manage them through its mobile savings app²⁷. The app lets you check balances and available funds, see recent transactions, view account details including how interest is paid, create future dated transactions, withdraw funds where the account allows it, and move money between your Newcastle accounts²⁷. To use it you need an online savings account with the society and a compatible phone or tablet, running iOS 15 and above or Android 11 and above²⁷.

Paying money in is straightforward. For bank transfers, the beneficiary name is your own first and last name and the reference is your 13-digit Newcastle account number, which you can find in your welcome letter or by logging in online²⁸. The society participates in the Confirmation of Payee scheme, which checks that the name on a payment matches the account before money is sent²⁹. Cheques are still supported: for security, the society advises making them payable to "Newcastle Building Society", followed by your name and reference number, and its Customer Service team on 0345 734 4345 can stop or report lost cheques³⁰. Our savings guide explains the different types of account and how they compare.

Cash ISAs and ISA transfers

Newcastle offers a range of cash ISAs so you can save tax-free, and most of its cash ISAs are flexible ISAs, meaning you can withdraw money and replace it within the same tax year without losing that part of your allowance³. It also offers the CustomISA service, which lets you spread your annual tax-free allowance across as many Newcastle ISAs as you like, rather than putting it all in one account³. New customers can view the range, select an account and apply online³³.

Transfers in from other providers are supported. You must first open a cash ISA with the society and let the providers arrange the transfer between them: you never move the money yourself, because doing so would lose its ISA status³⁴. During the online application you select "Transfer an existing ISA held with another provider" (or "Both") when asked how you want to fund the account; if the ISA is already open, you print, complete and return a cash ISA transfer form by post³¹. Stocks and shares ISAs held elsewhere can also be transferred into a Newcastle cash ISA, using a stocks and shares transfer form provided at the end of the application³³.

Partial transfers are possible in some cases: you can transfer the full amount of a cash ISA opened in the current tax year, previous years' subscriptions in part or in full, or a combination³⁴. Transfers out work the other way round: you contact the new provider, who arranges it with the society, giving them your sort code, account number and your account number as the reference³⁴.

The timescales are set by rules that bind all ISA managers: a cash ISA transfer should take no longer than 15 working days, and a stocks and shares ISA transfer 30 calendar days³⁴. Newcastle aims to complete a transfer out within five working days of receiving the request, as long as the account does not have notice to serve³⁴. Branch-based ISAs can be transferred from one branch-based account to another by visiting your local branch³⁵. Our guide to ISAs explains the rules that apply to all providers.

The Newcastle Cash Lifetime ISA

The society offers the Newcastle Cash Lifetime ISA, a cash version of the government scheme designed to help younger savers build savings towards a first home or later life, and you can apply online³⁶. Transfers from other Lifetime ISAs are accepted, but only full transfers: a Lifetime ISA with Newcastle can be funded only by a completed Lifetime ISA transfer or by new investment³⁶. To start a transfer, call the society's Savings Team or visit a branch⁴. The rules on what a Lifetime ISA can be used for, and the government bonus, are explained on our Newcastle Building Society Cash Lifetime ISA page.

Pensions, investments and protection advice

Newcastle Building Society does not itself give investment or pension advice. It introduces customers to a separate financial advice firm for advice on investments, pensions, life and protection insurance, and inheritance tax planning³⁷. The advice that firm gives, and any charges for it, are agreed with you directly. If you are weighing up this kind of advice, our guides to pensions, investing and protection insurance set out how these products work and what to ask.

Banking with Newcastle: branches, phone and appointments

Newcastle is a branch-based society, and mortgages are a good example of how it works: you can pop into your local branch and speak to a member of the team, or book an appointment by phone, video call or face to face at the Newcastle Monument branch¹. Mortgage appointments are arranged by completing the online form or calling the mortgage team, Monday to Friday 9am to 5pm¹⁴. For general mortgage changes and appointment requests, the number is 0345 601 5533, between 8am and 6pm Monday to Friday²⁰.

There is no Newcastle current account: the society's banking offer is built around savings accounts, cash ISAs and the savings app, so everyday banking needs a separate account elsewhere. Our guide to current accounts covers the options, including basic bank accounts.

If you struggle to pay or are a victim of fraud

If you have, or expect to have, difficulties paying your Newcastle mortgage, the society asks you to get in touch and says it is there to help²⁶. Its Mortgage Payment Difficulties team is on 0345 702 3083, Monday to Thursday 9am to 6pm and Friday 9am to 5pm³⁸. The society has also signed the Mortgage Charter, which it says provides extra ways it may be able to help customers having trouble paying their mortgage³⁹. Under the charter, eligibility for its support covers members who have a UK residential mortgage with the society, are up to date with their mortgage payments, and have more than 12 months left on their term³⁸.

If you are struggling with debts more widely, free independent help is available: our debt guide lists the free advice charities and what they can do.

On fraud, the society participates in the Confirmation of Payee scheme, which helps spot when the name on a payment does not match the account²⁹. If you have been scammed, the Financial Services Compensation Scheme advises that you speak to your bank, building society or credit union, as they can protect and reimburse victims of certain types of fraud, and report it to Action Fraud at www.actionfraud.police.uk⁴⁰. Our scams and fraud guide explains the common scams and your rights to reimbursement.

How your savings are protected

Eligible deposits with Newcastle Building Society are protected up to a total of £120,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme⁸. The limit applies to the total of deposits you hold with Newcastle Building Society and Manchester Building Society combined, because the two brands share one licence, so two accounts under the two names count as one⁸. The FSCS is free and automatic: you do not apply for it, and if the society failed, the scheme would pay compensation up to the limit⁸.

The FSCS publishes examples of how savers with more than the limit can spread money across separate institutions to stay protected, such as holding £120,000 with one provider and the rest elsewhere⁴¹. You can check any provider's protection using the FSCS's own protection checker⁴¹. For more on how the scheme works and where its cover stops, see our guide to consumer protection.