Leek Building Society has become the latest lender to offer mortgages through the Own New scheme which provides affordable deals for home buyers.
The Own New Rate Reducer mortgage launched earlier this year to help improve mortgage affordability for home buyers and movers.
It is designed to lower interest rates and reduce monthly repayments for the initial fixed-rate term.
It’s all down to the involvement of housebuilders who offer incentives to buyers. If a housebuilder offered, for example, a 5% incentive on a home, Own New Rate Reducer would take this sum and directly offset it against the mortgage interest to reduce monthly payments. Buyers can opt to spread the benefit across the first two or five years, depending on their lender’s criteria.
Leek follows in the footsteps of lenders such as Halifax and Virgin Money in joining forces with Own New. The collaboration will enable the Building Society to offer the innovative Own New Rate Reducer mortgage through brokers, providing a flexible and affordable path to homeownership.
Leek Building Society’s product is for buyers who wish to borrow up to 95% loan-to-value (LTV) for new build houses and flats.
Family gifted deposits are accepted and there are reduced early repayment charges. Leek said there was no credit score required.
Helen Wainwright, director of lending at Leek Building Society, said: “Our Own New Rate Reducer product is a game-changer for those looking to buy their dream home.
“With lower initial rates, it’s a more affordable way to step onto the property ladder. We’re thrilled to be working with Own New on this innovative initiative.”
Eliot Darcy from Own New added: “We’re thrilled that Leek Building Society is now offering Rate Reducer mortgages. This opens-up Rate Reducer to more people with a bigger range of circumstances, including people with a 5% deposit buying a new build flat.
“Our goal is to make buying a new home more affordable for everyone, and this partnership allows us to bring real, tangible savings to buyers across the country.”
For more information about the Own New mortgage and how to apply, please visit https://www.leekbs.co.uk/intermediaries/own-new-mortgages/ or contact Leek Building Society Intermediaries Team on 0808 2819 309.
