Newcastle was the first major lender to sign up to the Deposit Unlock scheme earlier this month.
The lender has applied a cut of 0.56% to its 5-year fixed rate, which is now available at 3.19%, upped its maximum purchase price, and introduced a number of incentives.
The society has increased the maximum purchase price from £330,000 to £600,000, reflecting the national scope of the scheme.
Both products come with zero product fees to pay and by way of additional incentive, the lender has introduced a free standard valuation for properties up to £500,000 and £500 cashback.
An early repayment change (ERC) of 2% until 28 February 2023 and 1% until 29 February 2024 is payable on the 2-year product.
The 5-year product has tiered ERCs declining annually from 5% in the first year to 1% in the final year.
Franco Di Pietro (pictured), head of intermediary mortgages at Newcastle Building Society, said: “Deposit Unlock is true innovation and gives low deposit buyers a great option on new builds.
“As the first lender to bring the scheme to market and roll out nationally, it means we’re also the first to respond to broker feedback, refining the proposition to make it an even more attractive option for customers and broaden access to the product range across the country.”
