Housebuilder Tilia Homes has today announced its partnership with Own New to offer lower-rate mortgages across its developments.
The ‘Rate Reducer’ mortgage will provide first-time buyers and those with existing homes alike with access to lower interest rates and reduced monthly payments.
The initiative will be available across all Tilia Homes developments, covering its Northern, Central, Eastern and Western regions.
Caroline Robinson, Head of Marketing for Tilia Homes, comments: “Our partnership with Own New sits perfectly with our own ethos of supporting as many buyers as possible to realise their dreams of getting onto and moving up the property ladder.
“We know there are housing shortages in the regions where we are building, both for private purchase and affordable homes. Therefore, we want to support our buyers by giving them every opportunity to buy a home they can call their own.
“We believe in building the right homes in the right places in trying to meet that need and create new communities that can thrive.”
Own New works behind the scenes with housebuilders and lenders to reduce the overall cost involved with mortgage loans on new build properties. The reduction is funded by the
housebuilders’ contributions towards the cost of the mortgage and enables the lender to offer borrowers more competitive interest rates during the initial period of their mortgage.
Lenders will still carry out their affordability assessment and independent financial advice must be sought from a regulated mortgage broker who has completed additional training to access this scheme.
Eliot Darcy, founder of Own New, which aims to create a more open system of lending to make home ownership attainable to more people, adds: “With the support of our housebuilder partners like Tilia Homes, the Rate Reducer scheme is making it possible for buyers to purchase the home of their dreams.
“The principle behind Rate Reducer is quite straightforward. We wanted to find a way to introduce a regular mortgage, but with lower monthly payments. Working with our national network of housebuilders, we’ve made buying a new home more accessible and more affordable for people who might otherwise have given up, especially given the current economic climate.”
