UK lender offers 98% mortgage to first-time buyers – but bars bank of mum and dad

Newcastle Building Society’s First Step mortgage has an interest rate of 5.25%, fixed for five years. Photograph: Justin Kase z12z/Alamy

First-time buyers are being offered the chance to borrow up to 98% of the price of a property – but they cannot get help with their deposit from the bank of mum and dad.

Newcastle building society’s First Step mortgage is designed to help those who have been saving to get on the housing ladder.