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New Mortgage Lets First-Time Buyers Borrow 98% Without Parents

9/15/2025

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Summary

Story summary

Newcastle Building Society introduced the First Step mortgage, enabling first-time buyers to borrow up to 98% of a property's value without parental support.
It offers a fixed interest rate of 5.25% for five years.
Borrowers need a minimum deposit of £5,000 or 2% of the property's price.
Experts caution that high loan-to-value mortgages may expose buyers to risks if property values decline.
The initiative seeks to assist buyers amid increasing property prices and living expenses.

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Story summary

Newcastle Building Society introduced the First Step mortgage, enabling first-time buyers to borrow up to 98% of a property's value without parental support.
It offers a fixed interest rate of 5.25% for five years.
Borrowers need a minimum deposit of £5,000 or 2% of the property's price.
Experts caution that high loan-to-value mortgages may expose buyers to risks if property values decline.
The initiative seeks to assist buyers amid increasing property prices and living expenses.