Buying a home is a rite of passage that many people hope and plan, often for years, to achieve. However, people’s ability to buy the home they need can too often fall in the face of financial barriers, with knock-on effects that can delay other goals and life events. Fortunately, some schemes can help ease the journey to buying a home, such as Shared Ownership, and the recently launched Own New scheme.
What is the Own New scheme all about?
Revolutionising the home buying process, Own New helps buyers to secure a mortgage for less when buying a new build home, helping them to achieve home ownership sooner.
Own New operates on two fronts, focusing on the two key parts of affordability when looking for a mortgage:
1. how much deposit a buyer has, and
2. the rate at which they can repay their mortgage.
The Deposit Drop option helps hard-earned cash go further, by helping to secure mortgages with only a 5% deposit.
The Rate Reducer option can help to reduce the fixed term interest rate on a mortgage by up to 4%, making a mortgage more affordable going forward.
Whilst combining the two options is not currently possible, they each individually can make a substantial difference to people, depending on their circumstances.
Who is the Own New scheme for?
One of the distinguishing features of Own New is its inclusivity. Anyone buying a new build home is eligible, from First Time Buyers through to Rightsizers. However, it is a scheme that individual house builders need to sign up to, and whilst thousands have already done so, potential buyers should check before they make any firm decisions.
Own New is a great advantage to house builders, enabling them to offer buyers access to better mortgage deals, and encouraging them to enjoy the benefits of a newly built home. Builders can take advantage of the scheme by paying a small one-off fee upon the completion of a sale.
If a buyer falls in love with a home from a builder signed up to Own New, then that builder can refer them to an approved broker. This broker will guide buyers through the mortgage assessment process as they usually would.
By seamlessly integrating Own New into the standard home buying practice, the scheme is easily accessible and customer-friendly. Additionally, buyers are encouraged to take advantage of the myriad benefits of a new build home, such as energy efficiency, modern features and peace of mind.
Craig Hall, Director of New Homes Financial Services at LSL had this to say:
“The launch of Own New Rate Reducer is the culmination of cross industry collaboration, providing an innovative solution for buyers of new build homes, with lower more affordable monthly payments [during initial product term]. It is great to see this backed by lenders such as Halifax (Lloyds Banking Group), Virgin Money, and Furness Building Society with more in the pipeline too. Well done to all key stakeholders involved with bringing this to market!”
Owning a home that suits your needs is a big dream, and at Your Move we hope it can become a reality for anyone. Own New is a scheme that can help make that dream come true by making home ownership more accessible to first-time buyers, and more affordable for anyone looking to buy a new build. As a scheme that aligns buyers’ interests with house builders’ interests, through the skilled work of mortgage brokers, Own New is a service that can make a big difference for those looking to buy new homes and sell them.
If you are interested in finding out more about this scheme our partner Embrace Financial Services are here to help talk through your options, simply book a mortgage appointment for more information
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
*Sources
Own New
LSL Land & New Homes
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Your initial mortgage appointment is without obligation. Embrace Financial Services normally charge a fee for their services; however, it is payable only on the submission of your mortgage application. The fee will depend on your circumstances but the standard fee is £549. Complex cases usually attract a higher fee. Embrace Financial Services will discuss and agree the fee with you prior to submitting any mortgage application.
Please be aware that the information provided within these archives has been pre-published, as of the date published on each article. The information contained within, including references to taxation, legislation, regulation, or any other issues or concerns may no longer apply.
The Your Move Content Marketing Team
