Darlington Building Society partners with Own New to launch Rate Reducer mortgage

09 September 2024

Darlington Building Society has partnered with Own New to launch a brand-new Rate Reducer mortgage product.

Through this product, first-time buyers and home movers alike can enjoy the economic benefits of buying a new build home while maintaining affordable monthly repayments, with as little as a 5% deposit.

Housebuilders typically offer up to 5% of the value of the property as an incentive to buyers, such as cashback or as a deposit contribution, to people buying new-build homes.

For Own New Rate Reducer mortgages, this is instead invested into the mortgage to lower the interest rate during the fixed-rate period, unlocking a more affordable mortgage with lower monthly repayments for the initial term.

As part of the product, those with Skilled Worker VISAs are eligible up to 90% loan-to-value (LTV)

The 95% LTV new build mortgage also offers a generous affordability model, accepts non-guaranteed customer income such as overtime and bonuses, as well as accepting family gifted deposits.

Louise Thorpe, chief customer officer at Darlington Building Society, said, “Darlington is pleased to launch our Own New Rate Reducer mortgage, serving the needs of both existing and aspiring homeowners.

“We work closely with our broker partners to deliver products that are responsive to the changing needs of the modern mortgage market.

“Darlington’s Own New Rate Reducer proposition is unique in that we accept Skilled Worker VISAs and have adapted our affordability criteria in response to broker feedback and market conditions.

“It enables first-time buyers and home movers to attain or maintain a lower rate and the lower repayments they’re accustomed to.”

Own New founder, Eliot Darcy, added: “We’re thrilled that Darlington Building Society is now offering Rate Reducer mortgages to their new build customers nationwide.

“Our goal is to make buying a new home more affordable for everyone, and, with Darlington’s focus on making complex cases simple, particularly around skilled worker VISAs and affordability, this partnership allows us to bring the benefits of Rate Reducer to more buyers across the country.

“By reducing monthly mortgage repayments, we’re helping more people achieve the dream of home ownership, even in today’s challenging market.”