Our Mortgage Process

Every mortgage customer is different, and whether you're a first time buyer or looking to remortgage with us, you could find that you need a helping hand at some stages of the mortgage application process.

What is a Cash ISA?

Just like a savings account, a Cash ISA (Individual Savings Account) is a safe, secure way to store your money. The only difference is that any interest you earn on your savings is tax-free.

What are the benefits of an ISA?

There are many reasons to opt for a Cash ISA over alternative savings accounts. Not the least of these, is that they’re a great way of saving for your future. Other benefits include:

  • Currently, all basic rate taxpayers can earn £1,000 of tax-free savings interest per year, under the Personal Savings Allowance (PSA). However, there is no guarantee that this won’t change in the future. With ISAs, you’re guaranteed your savings will always be tax-free. Investing your allowance each year means you can grow your savings without having to pay any tax.
  • If you were to opt for an alternative regular savers account and savings interest rates increased, the money you’d saved may tip you over the Personal Savings Allowance limit.
  • Some types of Cash ISA come with the added benefit of government boosting. For example, the 25% government bonuses offered with Help to Buy ISAs and Lifetime ISAs. 

Are ISAs tax-free?

Yes, with a Cash ISA you can rest assured your savings are not only tax-free, but safe from changing regulations.

The only time when a Cash ISA isn’t exempt from tax is if you are aged 16 or 17 years old, and the money in your account is a gift from a parent. If this is the case, your parents may have to pay tax if parental settlement rules apply.

Cash ISA rules

  • To be eligible for a Cash ISA, you must be aged 16 or over and a UK resident. The only exception to this is in the case of Lifetime ISAs, that require you to be 18 years old
  • You can only open one Cash ISA per year
  • You have a single ISA allowance each year, which you can divide between a Cash ISA, a stocks and shares ISA, an Innovative Finance ISA and/or a Lifetime ISA. With a Lifetime ISA, the maximum allowance is £4,000 each year, meaning you have up to £16,000 to split between the other types

How much can I put in an ISA?

The total amount you can put into a Cash ISA for the 18/19 tax year is £20,000. This is known as the ISA allowance and is available to every person over 16 in the UK. You have the choice of using up the maximum allowance in one account, or splitting between the different types of ISA products.

Any interest your ISA earns doesn’t count towards your Personal Savings Allowance.

When is the ISA deadline?

The ISA deadline is midnight on 5th April each year; this is the end of the tax year. Any unused allowance doesn’t roll over into the new tax year, so you should try to make the most of your allowance before the deadline comes around. For more information on the ISA deadline, refer to our ISA deadline guide.

What are the different types of Cash ISA?

There are a number of different Cash ISAs available to help you achieve your savings goals. Whether you’re saving for your first home or setting up a nest egg for your golden years, there’s an option to suit you.

Fixed Rate ISAs

A Fixed Rate ISA pays a guaranteed amount of interest for a set period of time, from six months to five years. Though withdrawals are permitted, they’re subject to penalties. Consequently, a Fixed Rate ISA is better suited to those who won’t need immediate access to their savings.

Help to Buy ISAs

A Help to Buy ISA is a government scheme designed to help you save for a mortgage deposit on your first home. To qualify, you can’t own a property anywhere in the world.

You can save up to £200 a month in a Help to Buy ISA, and they come with the added bonus of government contributions. In this case, your savings could be boosted by 25%. The minimum government bonus is £400, so you will have to have saved at least £1,600 to qualify for a government bonus.Please note, Help to Buy ISAs are due to be withdrawn in November 2019.

Lifetime ISAs

A Lifetime ISA is a tax-free savings account that also offers a government bonus of 25% on top of the money you put in, up to a maximum of £1,000 a year. With a Lifetime ISA, you can deposit as much as £4,000 per year until the age of 50. Lifetime ISAs can only be opened and funded by those aged 18 to 39.

Junior ISAs

Junior ISAs are tax-efficient ways of saving for your little one’s future. You must be 16 or over and a UK resident to open a Junior ISA on behalf of a child, or be a child aged 16 to 18 to open one for yourself. The Junior ISA allowance for 2019/20 is £4,368.

Find everything you need to know about Junior ISAs here.

Refer to our Cash ISA page to discover the full range of ISAs available with Newcastle Building Society.

How many ISAs can I have?

You can have multiple ISAs at one time, but you can only open or pay into one of each type of ISA using your £20,000 allowance. 

Though you can only open one Cash ISA each tax year, there’s no limit to the number of ISA transfers you can make, should you spot a better interest rate with another provider. However, with Newcastle Building Society, you can open multiple cash ISAs using our CustomISA service. You can find more about that here.

What happens if I take money out of my ISA?

Withdrawals are permitted from most ISAs. However, if you make a withdrawal from a Fixed Rate ISA, you will be subject to a penalty in the form of a loss of interest on your savings.

If you think you will need access to your savings quickly, then you may be best suited to an ISA that doesn’t penalise withdrawals.

In relation to the Lifetime ISA a penalty of 25% of the withdrawal amount will be deducted unless the funds are being used for either:

  • Buying your first house (the account must have been held for a minimum 12 months)
  • You reach the age of 60
  • You are diagnosed with a terminal illness and have less than 12 months to live

Can I transfer my ISA to another provider?

You are permitted to unlimited transfers each tax year. However, you should always check that your new provider accepts transfers, as not all banks and building societies are obliged to do so

Avoid withdrawing money from your ISA yourself, as your savings may lose their tax-free status!

There are a number of reasons you may want to transfer to a new provider. For example, if you’ve spotted better rates elsewhere. Read our complete guide to the ISA transfer process for more information.

Can I inherit an ISA?

If your spouse or civil partner passes away, you will be eligible to receive an Inheritance ISA Allowance. Read more information about inheritance tax allowance in our helpful inheritance tax allowance guide.

Applying for a Cash ISA with Newcastle Building Society

If you'd like to apply for a Cash ISA at Newcastle Building Society, the process is really simple. We also accept ISA transfers, including Lifetime ISAs. To get the ball rolling, simply browse our Cash ISA product range or contact us.​

On this page:

Read the scenarios below to find out which stage of our mortgage process you're at, then refer to the relevant step of our mortgage application timeline to find relevant advice for you.

• I want to know how much I can borrow on a mortgage with Newcastle Building Society - Go to Step One

• I want to know how much my monthly repayments will be - Go to Step Two

• I already know how much you will lend me, and would like to know how to apply for a mortgage - Go to Step Three

• I'm booked for a mortgage appointment and want to know what to expect - Go to Step Four

• My offer on a property has been accepted, and I want to know what to do next - Go to Step Five

• I've put in my full mortgage application and I want to know what happens now - Go to Step Six

 

Step One

Before applying for a mortgage with us, you'll need to find out how much you can borrow. The amount you can borrow on a mortgage with us will depend on your individual circumstances, including your income and employment status, your typical monthly outgoings, the type of property you're looking to buy, and how much you have for a deposit.

To get an idea of how much you might be able to borrow with us, take a look at our mortgage affordability calculator. This tool will give you a guideline for how much we might be willing to lend you, but it's not set in stone, so to get an illustration you will need to book an appointment with one of our qualified mortgage advisers.

 

Step Two

Once you know how much you can borrow on a mortgage, you'll probably be wondering how much your monthly repayments are going to be. To get an idea of how much you might need to pay each month, enter your details into our helpful mortgage repayment calculator. This helpful tool will give a guideline for how much you could expect to repay each month, as well as allowing you to compare repayments across our full range of mortgages.

 

Step Three

Once you have an idea of how much you can borrow and how much your repayments might be, please contact us on 0345 606 4488 or book an appointment at your local branch with one of our qualified mortgage advisers. Our phone line is open 8am-8pm Monday to Friday and 9am-3pm on Saturdays, and the initial phone call will only take about 5 minutes.

 

Step Four

Now it’s time for you to have a full mortgage appointment with one of our advisers, either in branch or over the phone. The appointment should take around an hour and a half in total. If your appointment is over the phone, the mortgage adviser will call you, so you don't need to worry about costly phone bills.

Your mortgage adviser will go through your current income and expenditure to determine exactly how much we can lend you. Although the exact documents required vary from case to case, it is useful to have the following documents to hand:

•Your latest payslip
•Balances of any savings accounts you have
•Details of any credit card debt you may have
•Details of any loans you may have
•Details of any regular commitments – such as a phone contract or gym membership
•Details of any insurance policies you may hold

A full credit search will then be completed and you will receive a Decision in Principle (DIP). Some estate agents may require the DIP to be agreed before you put an offer in on a new home.

During the second part of the appointment, the mortgage adviser will recommend the best mortgage deal for you based on your personal needs and circumstances. They will issue you with an illustration that outlines the monthly repayments based on your chosen mortgage product. 

Once you have completed this appointment and know how much you are able to borrow, you can go ahead and make a formal offer to the seller of the house you wish to buy.

If there are any fees that are required to be paid up front with your application, you will need to send us a cheque or call us on 0345 606 4488 to pay by card to cover this. Your mortgage adviser will have explained these fees to you during your mortgage appointment.

 

Step Five

Once your offer has been accepted on a property, you can then make a full mortgage application to us. At this point of the mortgage process, we will ask you to send us documents to support your application, including:

•Bank statements
•Payslips
•Proof of address
•Proof of identity

At around the same time as applying for a mortgage, you should choose a solicitor to handle the legal side of buying a home, including drawing up your contract, preparing transfer documents, performing Land Registry searches and making sure everything is legally sound

 

Step Six

Once you've put in a full mortgage application with us, the next step is for us to begin processing your application. This will include a valuation being carried out on the property you are buying to ensure that the property is worth what you have agreed to pay for it. Once we've carried out all of our checks, we'll be in touch to make you a mortgage offer. A copy of the offer will also be sent to your solicitor.

Once the mortgage application process has been completed, you'll need to sign and exchange contracts, arrange buildings insurance and prepare for the move. You can find more information in our full guide to the house buying process, which covers all of the stages of buying a house, from saving for a deposit to moving in.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.