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New build home buyers are to be offered a mortgage tailored to their needs with low interest options.
Broker ‘Own New’ has launched a new product, working closely with major developers, which it says will give some buyers a 1% borrowing rate or even lower.
Below 1%
Buyers with a high deposit or equity could be eligible for rates below 1%, Own New says.
Own New was set up in 2022 by entrepreneur Eliot Darcy (main picture), and its Deposit Drop product has been helping buyers in the North East and Yorkshire to buy a new home with a 5% deposit since early last year.
Own New’s ‘Rate Reducer’ is launched today with Halifax, Virgin Money and Barratt Developments.
Lenders Gen H, Furness Building Society and Perenna have also confirmed they will soon be offering mortgages through the scheme.
Other developers signed up to take part include Persimmon, Taylor Wimpey, Bellway and Berkeley Homes.
Incentives
Own New Rate Reducer works by using incentive budgets which housebuilders offer to their customers, to reduce the monthly mortgage payments over a fixed term.
We believe that Rate Reducer will be a significant boost to many people’s home-buying dreams.”
Darcy says: “Our ethos is to make home ownership and mortgage lending in this country open to more people, and we are confident that the launch of the Own New Rate Reducer will achieve that.
“Alongside the national lenders and housebuilders who have signed up to the scheme, we believe that Rate Reducer will be a significant boost to many people’s home-buying dreams,” he says.
“People can benefit from Rate Reducer whether they have a small or large deposit. For some people who already have equity in their home, it could herald the return of the sub-one per cent mortgage deal.”
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