Newcastle for Intermediaries has launched a low-deposit mortgage aimed at first-time buyers with smaller deposits. 

The mutual’s First Step product lends up to 98% loan to value, with a minimum cash deposit of £5,000 and a maximum loan size of £350,000.

A five-year fixed rate is available at 5.25% (6.2% annual percentage rate of charge) and comes with a free standard valuation up to £550,000 and 10% overpayments per year.

It will initially be sold through L&C Mortgages, Connells Group and Mortgage Advice Bureau.

Newcastle Building Society head of intermediary mortgages Francesco Di Pietro (pictured) says: “First Step has been designed to give people who have worked hard to save a cash deposit a realistic route into home ownership, while ensuring robust affordability and lending criteria.”

L&C Mortgages managing director Sidney Wager adds: “This [product] will allow L&C advisers to find a solution for more first-time buyers, who can afford to buy but may only have a smaller cash deposit.  

“It’s a practical step towards broadening routes to homeownership, harnessing the value of advice to ensure positive outcomes for customers.”