The society, which said it was the first lender to launch a 95% LTV product to new build buyers, would be offering the deals under Deposit Unlock – an insurance-backed mortgage scheme.

The new mortgage indemnity scheme has been developed with the Home Builders Federation and its members along with insurance broker Gallagher Re.

The scheme will initially be available in the North East of England only. It is designed to help more low-deposit borrowers secure a new build home up to a value of £330,000 with a deposit of just 5%.

Stuart Miller, customer director at Newcastle Building Society, said: “Key to our purpose as a regional Building Society is to help more people get on and up the property ladder – especially those without access to the bank of mum and dad.

“Being the first lender to adopt the scheme means we’ll be providing new-build buyers with more options to access low-deposit mortgage products, and helping to address the pressing need for more homes to be built.”

Further details about Deposit Unlock will be announced when the scheme launches in a few weeks’ time.