Your guide to Newcastle for intermediaries

Working with mortgage lenders like Newcastle for intermediaries can be beneficial for mortgage brokers in the UK. Want to know why? Read this guide to find out

By Kath Villamayor

25 Nov 2024

Contents

What is Newcastle for intermediaries?
Home loan products offered by Newcastle for intermediaries
Remortgaging with Newcastle for intermediaries
Newcastle for intermediaries’ eligibility criteria
Why choose Newcastle for intermediaries

Engaging the services of mortgage brokers, also called intermediaries, is helpful for aspiring home buyers in the United Kingdom. These intermediaries work with various commercial banks and traditional mortgage lenders to find the best mortgage offerings for their clients. They assess the property loan products introduced by each lender to compare their features and benefits.

Aside from banks, credit unions and the mortgage lenders, intermediaries can also partner with building societies. For instance, you can work with Newcastle Building Society to help your clients achieve their homeownership goals. This financial institution offers an intermediary-only platform for their partner brokers to help them navigate Newcastle’s tools and services with ease.

In this article, Mortgage Introducer will discuss everything you need to know about Newcastle for intermediaries. We will talk about Newcastle Building Society’s background as well as their home loan products. We will also cover their eligibility criteria. Read on if you want to examine if this is the right lender for you and your clients.

What is Newcastle for intermediaries?

Newcastle for intermediaries is the intermediary-only platform of the Newcastle Building Society, a financial institution that operates in North Shields, England. They focus on mortgage lending for potential borrowers and working with intermediaries to achieve a common objective.

According to Newcastle for intermediaries:

A quote from the Newcastle for intermediaries, stating that this mortgage lender focuses on collaborating with intermediaries to help their clients buy their homes

Newcastle for intermediaries also has a website dedicated to mortgage brokers. In this online portal, intermediaries can find everything they need—from Newcastle’s mortgage products and eligibility criteria to helpful tools and a partnership hub page.

Background of Newcastle Building Society

The Newcastle Building Society is authorised by the Prudential Regulation Authority (PRA) and regulated by both the Financial Conduct Authority (FCA) and the PRA. They are also a member of the Building Societies Association.

This mortgage lender is awarded as the Best Regional Building Society by What Mortgage Awards for eight consecutive years. This makes Newcastle for intermediaries a good choice not only for you but for the top mortgage intermediaries in the UK.

Home loan products offered by Newcastle for intermediaries

Just like other building societies and mortgage lenders, Newcastle for intermediaries offers the usual mortgage products in the UK. They have Residential and Buy to Let property loans for potential borrowers. Newcastle for intermediaries has classified their home loan products into three categories for targeted clients:

new customers
existing customers
product transfers

Let us explore each category below:

1. New customers

Newcastle for intermediaries offers home loan products with up 90% loan-to-value (LTV) ratio. They also have mortgages that are payable for up to five years.

2. Existing customers

Existing clients can avail of Newcastle for intermediaries’ fixed rate and discounted variable rate mortgages with up to 95% LTV ratio. Base rate tracker mortgages are not available.

3. Product transfer

This is for existing clients who want a new mortgage deal. Newcastle for intermediaries will evaluate their eligibility once they review the client’s existing mortgage details. You can use their online product transfer tool to process a product transfer for your clients. Newcastle for intermediaries will then make a product transfer illustration so that you can review their mortgage offerings.

The product transfer process will be completed once the requirements are satisfied.

Remortgaging with Newcastle for intermediaries

If you have clients who want to remortgage, Newcastle for intermediaries offers up to 95% maximum LTV ratio. For the remortgage fees, they can be added to the mortgage if the final LTV ratio does not exceed the maximum limit.

Check out this video on how to remortgage a house or flat in the UK:

To help you give the best service for clients who want to remortgage their homes, see our remortgage rates. You can check back weekly or favourite this page to get the latest updates.

Newcastle for intermediaries’ eligibility criteria

Want to check if your clients will qualify for Newcastle for intermediaries’ lending criteria? We listed six requirements to help you assess your clients’ details:

age
credit score
residency
loan purpose
income
unacceptable properties

Let us discuss each of Newcastle for intermediaries’ requirements for eligibility:

1. Age

Newcastle for intermediaries sets the minimum age for residential mortgage applicants at 18 years old. For Buy to Let mortgages, the requirement is at least 21 years old. The maximum age for clients at the end of the residential mortgage term is 80 years old. Newcastle for intermediaries did not set a maximum age limit for their Buy to Let mortgage.

2. Credit score

All mortgage applications will need to undergo an overall assessment. Newcastle for intermediaries will use this information to evaluate the creditworthiness of their applicants. A soft footprint will be reflected on your clients’ credit file after they have been credit scored by Newcastle for intermediaries. This will be conducted at the Decision in Principle (DIP) stage.

If your clients’ case is forwarded to a full property loan application, a hard footprint will be left on their credit file. Your clients’ credit score will determine if Newcastle for intermediaries will accept or decline their application. The same is true if it is referred to Newcastle’s underwriters for a manual assessment.

Want to learn more about credit scores and how it affects your clients’ buying capability? Watch this clip:

Check out this article on credit scores to buy a house in the UK. Find out the figures your clients need to buy property.

3. Residency

Newcastle for intermediaries offers their mortgage products to applicants who must have lived in the UK for at least three years. They should also be a UK resident at the point of application.

Newcastle for intermediaries will consider a non-European Economic Area (EEA) national if they can provide the necessary documents. This evidence must show their indefinite leave to remain in the country.

Newcastle for intermediaries will also conduct a credit search to evaluate if mortgage applicants are registered at their current address on the voter roll. To verify if your clients have maintained credit at current or past addresses provided, Newcastle for intermediaries will need to review their credit report.

Proof of residency

Newcastle for intermediaries’ standard residential policy requires mortgage applicants to submit documents that will prove their residency at their current address. The same is true for past addresses. The verification of your clients’ identities will be conducted via electronic verification check.

If needed, Newcastle for intermediaries will ask for additional documents after the DIP assessment.

4. Loan purpose

As for loan purposes, Newcastle for intermediaries will lend to your clients for the purchase of residential properties for owner occupation. This includes the purchase of residential properties for a family member to reside in. Both loan purposes are for residential home loans.

For the repayment terms, Newcastle for intermediaries requires a minimum of two years and a maximum of 40 years.

5. Income

Newcastle for intermediaries will accept the following income types:

basic income
car allowance
shift allowance
pay rise pending
mortgage subsidy
housing allowance
foster care income
private pensions and annuities
London or large city allowance
additional investment income from rental portfolio

These types of income are called primary taxable income. Newcastle for intermediaries will also consider secondary non-taxable income.

Newcastle for intermediaries will not consider these types of income:

seasonal work
universal credit
income support
housing benefit
carer's allowance
one off payments
unemployment benefit
bursaries and scholarships
gratuities not sighted on pay slips
investment or trust income that is not guaranteed
income derived from self-invested personal pensions
social security payments that are not guaranteed for life

6. Unacceptable properties

Not all types of houses and flats will be accepted by Newcastle for intermediaries. Below is a list of unacceptable properties:

houseboats
converted churches
back-to-back houses
uninsurable properties
uninhabitable properties
mobile homes or caravans
properties with invasive plants
houses under shared ownership
houses with restrictions to ownership
properties with any agricultural restrictions
council houses built in a non-traditional way

You can check other unacceptable properties via Newcastle for intermediaries’ online portal.

7. Mortgage verification

For Buy to Let mortgage applicants, they must show proof that all their current residential and Buy to Let mortgages are performing well. Newcastle for intermediaries will make an initial assessment of this requirement via credit search. This will be conducted at the DIP stage.

Newcastle for intermediaries may ask for evidence like a recent annual mortgage or bank statement. This is necessary to present a satisfactory payment over the past year. Newcastle for intermediaries will decide whether they need this information from your clients or not.

Disclosing the full extent of your clients’ Buy to Let portfolio will also be required by Newcastle for intermediaries. This should be done at two stages: DIP and full application. Ask your clients to prepare these details:

tenancy type
date of purchase
current monthly rent
original purchase price
address of the property
current mortgage payment
estimated value of property
current mortgage balance outstanding
details of lender and reference number

Your client’s details will be verified with the Land Registry information.

Why choose Newcastle for intermediaries

For mortgage brokers who want to boost their career, choosing to work with Newcastle for intermediaries can be a good decision. Having numerous accolades means that this mortgage lender walks the talk. With this, you can be sure that their promises are backed by top-notch service.

Newcastle for intermediaries claims that they want to cooperate with mortgage brokers to help their clients buy their dream homes. You can put that to the test since this is a building society that has been awarded as the best regional building society for eight consecutive years. Overall, working with them can place you in a better position of succeeding in the mortgage industry.

If you feel that Newcastle for intermediaries is not the right fit, you can check out other mortgage lenders. We have listed other guides to UK lenders with intermediary-only platforms:

Would you like to partner with Newcastle for intermediaries? Share your insights in the comments below.

Your guide to Newcastle for intermediaries