Have you put your new-build home buying plans on hold due to the high mortgage rates? Being able to afford monthly mortgage payments is a growing worry for many house buyers. But help us at hand by the way of low interest rates, for anyone buying a new build home. Find out more about the Own New Rate Reducer scheme which is available with housebuilder Allison Homes.
A brand-new scheme offering lower interest rates
Launched in February 2024, the Own New Rate Reducer scheme is available to anyone who is looking to buy a new build home. By offering buyers access to super low fixed mortgage rates over two or five years, it’s hoped the scheme will entice those cautious, tentative buyers back to the market and buying sooner. It certainly opens up options and helps people feel more comfortable buying at this uncertain time.
And it doesn’t matter if you’re a first-time buyer, a home mover, or if you’ve owned your own home in the past – as long as you’re buying a new-build home, you can apply for the Own New Rate Reducer scheme. Giving you access to rates you won’t find on the open market, it’s a great new opportunity to help you buy your dream new home.
The steps to a low rate mortgage when you buy a new home from Allison Homes
If you’re keen to take advantage of the Own New Rate Reducer scheme, the first thing you‘ll need to do is find your perfect Allison Homes home.
Once you’ve done that, contact Allison Homes at the development you have chosen to let them know about the new home you are interested in. Allison Homes will confirm whether the home is available with the Own New Rate Reducer Scheme, as availability is only on selected plots and developments.
If it is available, a Sales Executive from Allison Homes will then put you in touch with an independent, approved, Own New Mortgage broker. The broker will be your point of contact for arranging a mortgage, checking your eligibility and talking you through the Own New’s Rate Reducer mortgage process.
How the scheme works to reduce your interest rate
Once you’ve chosen your property and it is confirmed to be within the scheme, Allison Homes will agree to contribute up to 5% of the property purchase price. You will of course still need to contribute a deposit towards your home purchase.
The contribution of up to 5% from the developer goes to Own New, who will pass it on to your relevant participating mortgage lender. Your lender will then give you a percentage reduction off your interest payments, to at least the same value as the incentive. So, if you get a 4% contribution from Allison Homes, this will be offset against your mortgage interest, reducing your monthly mortgage payments for the initial couple of years, depending on the length of your mortgage term.
Of course, it is important to note that you will still need to meet the lender affordability tests as you normally would with any mortgage application. And when the deal finishes, your interest rates will likely be higher, and your monthly mortgage payments will increase.
Why the Rate Reducer scheme is beneficial for the long-term
As well as helping you pay lower monthly mortgage payments to begin with, the Rate Reducer scheme will see you pay more off the capital value of your mortgage. This is possible with the interest being charged at a much lower rate. And the result of this, once the fixed period comes to an end, is that you will end up with more equity in your new-build home.
So, the Own Rate Reducer Scheme can help you build up equity in your property as much as it can help you with mortgage affordability in the short term.
After impressive growth in recent years, new homes and developments from Allison Homes can now be found in more areas of the country. This includes the East Midlands area, the East and the South West of England. The company stands by an ethos of not just building houses, but homes and communities. You can expect attention to detail in all aspects of the homes’ construction, right down to the choice and style of materials in keeping with the local surroundings.
The Orchards development in Corby Glen, Grantham in Lincolnshire features 2, 3, and 4-bedroom homes that are all energy efficient, complete with solar panels and electric charging points.
The Primrose development in Holsworth, Devon offers more of the same, with 2, 3 and 4-bedroom homes, some single storey, that are energy efficient, all with air source heat pumps and predicted EPC B energy ratings.
And over in Nottingham, the Kings Meadow development in Fernwood has 3, 4, and 5-bedroom new homes for sale. The larger 4 and 5-bed homes on this development include solar panels, oak doors and a selection of integrated appliances.
To get started buying your dream new build home with the Own New Rate Reducer Scheme, start by searching for a property from Allison Homes here.
