If you’ve been dreaming of buying your first home but struggling to save a deposit, this one’s for you. Newcastle Building Society has launched a new 98% mortgage – a low deposit mortgage deal that could make a real difference for first time buyers and self-employed homebuyers alike.
What’s the offer?
This new 98% loan-to-value (LTV) mortgage from Newcastle Building Society offers:
- Borrow up to 98% of the property value
- Minimum deposit of just £5,000 or 2% (whichever’s higher)
- No gifted deposits – your savings must be your own (not the Bank of Mum and Dad)
- Available on homes priced between £96,000 and £350,000
- 5-year fixed rate for payment stability
- 10% annual overpayment allowance to help reduce your balance faster
In short, this is a genuinely accessible low deposit mortgage designed to help first time buyers step onto the property ladder sooner.
Why it matters
Saving a 10% or even 5% deposit can take years, especially with rent and living costs rising. Newcastle’s new 98% first time buyer mortgage tackles that challenge head-on by lowering the upfront savings barrier.
For many, a £5,000 deposit suddenly makes owning a first home feel possible.
It’s also an encouraging move for self-employed buyers, with Newcastle Building Society recognising that income doesn’t always come from a single payslip. Their flexible underwriting approach includes self-employed mortgage applicants, making this a more inclusive product than many standard high street offers. If you’re a Limited Company Director, Contractor, Freelancer, Sole Trader or CIS Worker, this could be just what you’re looking for.
A few things to keep in mind
While this mortgage offers great accessibility, there are a few criteria to note:
- You’ll need to show strong affordability – we’ll assess your income, credit history, and monthly spending before confirming if you qualify.
- No family gifts or loans are allowed for the deposit – this first time buyer mortgage rewards independent savers.
- With a 98% LTV, you’ll start with less equity, so consider making overpayments when possible to build ownership faster.
Why this could be a game changer
This 98% mortgage fills a real gap in the market. Since Help to Buy ended, first time buyers have had fewer routes into home ownership – particularly those without large savings or family help.
By offering a genuine low deposit mortgage, Newcastle Building Society gives independence to hardworking buyers, including freelancers, contractors, and small business owners.
The five-year fixed rate also provides peace of mind, helping buyers manage their budget with predictable monthly payments.
Our take at New Wave FS
We see this as a positive move for the housing market – one that could open doors for many deserving first time buyers.
Understanding how Newcastle Building Society’s underwriters will view your circumstances, especially if you’re self-employed or have complex income, is key. The right advice can make the difference between mortgage approval and rejection.
If you’re curious about whether this new 98% first time buyer mortgage could work for you, we can help:
- Check your eligibility for Newcastle’s 98% mortgage deal
- Compare it with other low deposit mortgage options
- Review how your self-employed income would be assessed
Ready to take your first step?
This could be the moment that turns your “someday” into “today.”
Let’s talk about how Newcastle Building Society’s 98% mortgage could help you buy your first home, even if you’re self-employed or just starting to save.
Get in touch with New Wave FS to see how close you are to getting your keys.
