As the UK in general becomes slightly more optimistic about the future of the economy and the growth in property prices, we are slowly starting to see an increase in higher loan to value home owner loan products, which comes as a welcome relief for many people looking for a new loan.

The latest high loan to value product comes from the Newcastle building society and will allow up to a maximum of 90 per cent loan to value, on a range of fixed rate loan deals.

However, access to these new high loan to value products is restricted to customers of the home owner loan and mortgage broker network Openwork, which is a nationally based mortgage broker service. This move clearly strengthens the argument for people looking for a new home owner loan to take professional advice from an adviser or loan broker.

As might be expected, the interest rate charged on the new product is slightly higher than many other fixed rate loan deals which are currently available on the market. The 90 per cent loan to value product, which is only available for house purchase, charges a rate of 6.25 per cent, with a completion fee of £499, as well as a reservation fee of £195.

The Newcastle has also launched an 80 per cent deal, which is available for remortgage as well as purchase and charges a rate of 5.39 per cent. The 90 per cent deal is a two year fixed rate loan and the 80 per cent deal is a five year fixed.

Steven Marks of the Newcastle said “We understand the importance of having strong relationships with key distributors, such as Openwork and the importance of supporting home owners with attractive offers. We’re pleased to be able to offer such competitive products to the market place and we’re confident these will be popular to Openwork’s customers.”