General mortgage FAQs

Your first mortgage payment may differ depending on your completion date. Full details will be confirmed in your completion advice. After your initial payment, your monthly payments will revert to your chosen payment date

Your direct debit will come out on the date you requested in your mortgage application. 

This will be the 1st, 8th, 15th or 25th of the month. If you pay on any date other than the 1st of the month it means you will pay more interest.

Below is an example:

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The maximum loan we will advance is as follows:

• For home purchases and remortgages, 95% of the price or valuation of the property, whichever is the lower. Please refer to specific product details for maximum loan to value (LTV). 

Loan to value or LTV, is the amount of your loan as a percentage of the total value of your property. For example if you purchased a property for £150,000 and you have a £15,000 deposit, your loan to value ratio would be 90%. 

• Remortgage for capital raising purposes is restricted to 80% LTV.
• Second homes/holiday homes must be strictly for the sole use of the borrower and dependent family members and must not be let. The maximum loan to value for such properties is 75% and the applicant's financial status must be sufficient to cover both loans (i.e. mortgage on the first property plus new mortgage).
• All applicants must find their deposit from their own resources however gifted deposits from relatives may be allowed depending on individual circumstances (Newcastle Building Society reserves the right to have sight of the source of the deposit).

The Society no longer assesses your borrowing capacity through income multiples and has developed an affordability calculator that is tailored to your individual circumstances. 

Assessment of how much you can borrow is now calculated through a combination of your income, regular commitments, and household/ lifestyle expenditure. In assessing affordability all unsecured loans which have more than six months to run, credit cards, and maintenance will be deducted. 

In addition, deductions will also be made for declared household and lifestyle expenditure which is compared against statistical data for accuracy. 

To see how much you could borrow please visit your local branch where we can make an appointment to speak to a mortgage adviser. Or, contact our Mortgage Contact Centre on 0345 601 0014* to arrange an appointment with one of our experienced mortgage advisers.

To ensure that your assessment is as accurate as possible please can you provide as much information regarding your personal income and expenditure. 

Information on monthly expenditures such as council tax, utility bills, insurances and loans/credit card commitments will need to be provided.

• For employed applicants, last three months' pay slips.
• For self-employed applicants who are sole traders/partnerships, the last two years' accounts OR the last 2 years' HMRC Tax Assessments (SA302s) and corresponding Tax Year Overview forms or accountant’s certificate.
• For self-employed applicants who are directors of a limited company, the last two years accounts or accountant’s certificate.
• Accounts and accountant’s certificate must have been prepared by an acceptable chartered or certified qualified accountant.
• Proof of payment for the preceding 12 months is required where the applicant has had a previous mortgage.
• Documentary evidence will be required for all forms of additional income that are being taken into account.
• If applicants are not registered on the electoral roll, they must supply proof of residence. Any utility bill, council tax bill, voters roll inquiries, bank statements, or mortgage statements are acceptable.
• We are required to confirm your identity. Acceptable documents include a passport, driving licence, or a recent bank statement dated within the last three months.

Yes – all properties must have a minimum purchase price and/or valuation of £50,000 whichever is lower.

The normal term for a mortgage is 25 years, however, we may consider a term up to 40 years subject to additional considerations (i.e. employment status/age).

Under common law, any occupant over 17 years of age has the rights to remain resident should, for any reason, it becomes necessary for the property to be vacated.

As mortgagor (the borrower in a mortgage agreement), you waive these rights by securing a loan on the said property.

Any person or persons resident at the time of the mortgage inception, who are not party to the said mortgage, will still hold these rights. By signing a consent to mortgage form they are waiving this right, should for any reason we need to take the property into possession.

Interest is calculated on the balance of the account at the end of each day.

Interest is then accrued daily and added to the account balance on the last day of every month.

This means every cleared payment that is made reduces the mortgage balance and interest is recalculated on the reduced balance.

We currently do not accept mortgage applications directly using the online system.

We do have a fully advised telephone service (available 8am - 6pm, Monday to Friday, on 0345 601 0014*) to ensure the mortgage you need is tailored to you and your circumstances.

Yes, we offer buy-to-let mortgages through mortgage brokers.

The mortgage application interview process can take up to 90 minutes over the telephone. The interview will include a detailed affordability assessment, a credit search, and a review of life and home insurance needs.

To make the interview as smooth as possible and to help speed up the interview, it would be appreciated if you have pay slips, P60, bank statement and insurance cover details to hand.