Shared ownership rates reduced by Newcastle BS

April 26, 2025 by Brendan O'Neill

Rates

Newcastle Building Society has announced a number of rate reductions within its shared ownership mortgage range – designed to assist more people in realising their dreams of homeownership.

The maximum rate reductions announced by the lender are as much as 0.55%, so this will make a significant difference to a lot of borrowers. The fixed two-year shared ownership product now comes with a rate of 4.75%. This product also has a fee of £999 as well as charges for early repayment. They have been set at 2% for the initial year followed by 1% for the year after that.

Not every borrower is able to access one of these shared ownership mortgages though. They are only available to those with an annual income of £80,000 or lower. The exception is for borrowers based in London, where the maximum earnings allowed for eligibility are £90,000 a year.

The top loan-to-value (LTV) available for these products is 95% and ‘staircasing’ can also be provided. That means people taking out one of the loans have the option of eventually growing their share to 100%. This can be done incrementally, in stages of 5% or more.

Michelle Ash from Newcastle BS told Mortgage Solutions that shared ownership was crucial in the current housing market, before adding:

“By lowering rates, we’re reaffirming our commitment to helping mortgage brokers support their clients with flexible, sustainable solutions that open the door to a better financial future.”

Any advisor who has CeMAP training will be delighted to see more evidence of rates coming down.