If higher interest rates, deposits and monthly payments are making the property market feel increasingly off limits, you are not alone. With rising mortgage rates and living costs, a high percentage of renters believe that they won’t be able to get on the property ladder. However, there is a new mortgage solution available to make buying more affordable.
By coupling low deposits with reduced monthly payments, the latest New Build Home Buying Scheme could be the answer for many first-time buyers and home movers.
Known as the Rate Reducer and Deposit Drop Scheme, this can only be delivered through specialist, approved new build brokers who have completed the training.
As it’s only available through participating ‘Own New’ lenders and homebuilders, why not let our approved team remove the hassle of shopping around and doing the research from your shoulders and get you one step closer to owning your own home?
This scheme is offered nationwide. If you’re interested, get in touch with the team at Agentis and book your free initial consultation.
Below are some of the lenders we deal with, however we have access to the whole of the market, including exclusive deals that you won’t be able to find yourself.
What Are The Benefits?
Let’s have a closer look at the positive outcomes that the scheme can provide for home buyers:
- Lower-cost mortgage: The buyer gets a reduced interest rate, which directly benefits their monthly expenses, and results in more capital being paid down in the initial term.
- More capital repaid: The lower interest rate results in more capital paid down in the initial term.
- Ideal for home movers: The scheme is also available for home movers looking to purchase a new build property.
How Does It Work?
So, how does the scheme create cheaper mortgages for borrowers? The incentive effectively part-pays the lender’s interest for the initial term.
Initially, the following incentives will be offered:
- Own New Rate Reducer 3%
- Own New Rate Reducer 5%
The incentive amount will be paid by the home builder. Other than that, it’s a normal mortgage that enables you to own 100% of your home. Both loan ranges will likely start by covering 60% to 90% of the property’s value, with fixed rates available for either two or five years.
The full breakdown of the reduced rate mortgage, including any cheque payment to you, will be included in a Rate Reducer Illustration. Your mortgage broker will also be on hand to discuss any questions you may have at any point.
What Our Customers Think
Frequently Asked Questions
Who is eligible for a Rate Reducer mortgage?
Anyone looking to buy a new build property (subject to all the relevant checks with the lender). It is suitable for people who are both employed and self-employed and can be used to buy a new-build house or flat.
What is the difference between a Rate Reducer and a Deposit Drop mortgage?
A Rate Reducer mortgage is a regular mortgage but with lower monthly interest rates for the initial period. A Deposit Drop mortgage allows customers to get a mortgage with a 5% deposit and competitive interest rates. Both options mean the customer owns 100% of their home.
Related Articles
Want to know more about the different types of mortgages and how they work? Discover advice, top tips and how-tos from our mortgage and protection experts in the Mortgage Advice Hub.
From first time buyers to equity release, our advice hub is designed to answer all the top questions that property owners want to know. From preparing you for your initial consultation with a mortgage advisor right the way through to becoming a proud property owner and beyond, we’ve got you covered.
For jargon-free answers on all things mortgages, browse the sections you’re interested in below.
Plan your Mortgage the right way
Get in Touch
Peterborough Property News
Discover the latest property news in and around Peterborough. We keep an eye on the latest property developments, property prices and news that impacts the local community. If you’re looking to move to the area or have been living here for years, read up on the latest property news written by our mortgage experts.
