Newcastle for Intermediaries - looking for adviser comment - it has extended JPSM range

Journalist: Samantha Downes, Currently at the I (business editing some Sundays (freelance) and Mortgage Solutions

ended 13. June 2022

Looking for comment on the below please:

The extension of Newcastle Intermediaries’ Joint Mortgage Sole Proprietor (JMSP) portfolio will see the introduction of a series of five-year fixed rate products available up to 95% LTV.

The products are designed to support first time buyers onto the property ladder and borrowers purchasing a home later in life or following a change in circumstances by using income of a family member to increase borrowing capacity.

The range includes a 90% LTV at 3.49% (APRC 3.8%) and a 95% at 3.59% (APRC 3.9%). Early repayment charges apply at 5% until 31.08.2023, 4% until 31.08.2024, 3% until 31.08.2025, 2% until 31.08.2026 and 1% until 31.08.2027.

All fixed-rate products in the JMSP portfolio come with a free standard valuation on properties of up to £500k and allow 10% overpayments per annum for borrowers who want the flexibility to make lump sum overpayments in addition to the £499 overpayments already permitted.


4 responses from the Newspage community

JBSP mortgages have been one of the really useful innovations in the mortgage market over the past few years, with more and more lenders able to look at lending on this basis, which is great for borrowers. Newcastle's JBSP deals for those with just a 5% deposit is good news and will help more people become home owners. It is very important to get good quality advice with these mortgages, especially the person helping the buyer, as they will have all of the responsibility of having a mortgage, but have no claim on the property they are helping to buy.
It's great that lenders continue to innovate with these types of products, however, they're not the silver bullet people think they are. Whilst it does allow family members to support affordability for first-time buyers we should caution this approach as the last thing the current property market needs is prices driven even higher.
The industry is crying out for more lenders to offer products like this to enable more buyers to get on the housing ladder and to offer greater options for buyers. With the average house price at circa 9x the average income, many sole buyers who are looking to go it alone face an uphill battle to ever get onto the ladder. Although everyone isn't going to be fortunate enough to have a family member join them on their mortgage it's still a step in the right direction which we'd love to see more of.
We welcome the expansion of the JMSP product range. These solutions are handy for aspirational clients who need a little assistance to meet affordability. JMSP unlocks outcomes where families are prepared to support each other and is a valuable solution for mortgage brokers wishing to add value. As always, sensible and creative solutions from Newcastle for Intermediaries.