Own New for New Build Homes
The Own New Scheme is setup to help existing home owners & first time buyers in buying New build properties, whilst benefiting from significantly reduced interest rates on their monthly mortgage.
How does it work?
The builder agrees to contribute 3% or 5% of the property value to go towards reducing your overall interest paid to the bank over a 2 or 5 year fixed rate period. Example below:
If you purchase a property at £300,000 and the builder agrees to give 5% towards your interest payments this means your lender will receive £15,000 to help reduce your monthly mortgage payments, on this example your monthly mortgage payments will be reduced by £625 per month. Please note that to qualify for the mortgage you must be able to show you can afford the mortgage when the incentive period ends.
Should I take 3% or 5%
Builders usually allow up to 5% of the property value for furnishings, so this means you may have to sacrifice the design the house in order to get the cheaper monthly payments. However, this is where the 3% incentive comes in, because this will allow you to use the additional 2% for furnishings, like carpets, tiles & kitchen surfaces.
Who is eligible for Own New?
This scheme is open to existing owners and first time buyers, buying on a residential basis only, this means you cant rent the property out under this scheme and you must intend to live in the property yourself.
Can all mortgage brokers help with an Own New Mortgage?
No, in order for a mortgage broker to provide a mortgage with an own new purchase they must obtain the sufficient qualification in order to advice on the Own New products. I am very happy to say we obtained the Own New qualification and can help you purchase your new build house via the Own New Scheme.
For more information on Own New, please complete the Get In Touch Form above and I will be happy to answer any questions you may have.
