A new initiative which is available for both first-time buyers and home movers, has launched to help make buying a new build home more affordable. Legal & General Homes has signed up in a bid to support is purchasers upgrade your home and reduce your mortgage rate.
Low-rate mortgages are now available so you can find your dream L&G home and spend less thanks to the Own New Rate Reducer scheme.
The Rate Reducer provides you with lower monthly mortgage payments and interest rates which could help you make the move this year.
This blog highlights how Own New works and all the benefits of the scheme so you have all the information you need at your fingertips to determine if this could break down the barriers to securing your dream home.
What is the Own New Rate Reducer?
The Own New Rate Reducer Scheme is designed to make it simpler for buyers to purchase a new build property. Those looking to buy will have access to significantly lower mortgage rates for their initial term.
The finance provider Own New is currently working with big lenders such as Halifax and Virgin Money and more than 60 homebuilders are now on board.
To simplify the scheme, the Own New Rate Reducer (ONRR) offers regular mortgages with cheaper monthly payments for an initial two or five-year period. It’s worth noting that this only works with new build homes and not previously owned homes on the open market.
We, like many other homebuilders, often offer impressive incentives when reserving a new home and with Own New we can use the incentive value instead to support you with your purchase, this allows us to invest in your mortgage and lower your interest rate, a huge advantage when buying new.
How does the Reducer Rate work?
The Reducer Rate is flexible to make the buying process as simple as possible.
If you’ve found your dream L&G property, we will agree to contribute either 3% or 5% of the purchase price once you have a mortgage which has been accessed through Own New.
Your mortgage lender will be notified of your homebuilder’s contribution and this payment will offset the mortgage rate resulting in lower monthly payments.
For a two-year fixed-rate mortgage with a 60% loan to value (LTV), rates start at 0.99%. It’s worth noting that rates will be higher if you have a higher LTV, which is the percentage of borrowing you have against your home.
Example: With a 40% LTV mortgage, you’ll own 60% of your home.*
*Please note that Independent financial advice must be sought from a regulated mortgage broker to access this scheme.
Mobeen Akram, New Homes Director at Mortgage Advice Bureau, said: “Innovation is essential to stimulate the mortgage market and keep building momentum, and the more options there are available to buyers, the better. Own New is a prime example of the ‘no one-size-fits-all’ solution to homebuying, helping a wider range of customers get on the property ladder.”
What are the advantages of Own New?
First-time buyers and those who have previously owned a property will find the initiative beneficial in a number of ways:
- Lower monthly payments are guaranteed in the initial term
- Buying a new build home is more accessible thanks to reduced mortgage rates
- A streamlined buying process with the added advantage of cheaper rates
- New build homes have many benefits…
Why buy new with L&G Homes?
There is no better time to buy new. You can make buying and moving home simpler thanks to the number of services available from Part Exchange and Assisted Move to Deposit Unlock, to name a few.
For many purchasers, sustainability is top of the agenda which is why so many are opting for new build homes as they are built to be more energy efficient than older properties, not to mention the savings that new builds can offer purchasers. Along with this comes less maintenance as a new home will feature brand-new kitchens and bathrooms and with every L&G home, there is a 10-year NHBC Buildmark warranty.
Another benefit for purchasers is the fact that you walk into a completely blank canvas with flexibility to design your home to suit your own taste and style, depending on your family’s needs in the moment.
How do I begin the process with L&G?
The Own New Rate Reducer is available throughout the UK on selected Legal & General developments. For more information on the Own New scheme, visit ownnew.co.uk or view L&G’s Own New page for more information on the process.
