"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. "
- Eliot Darcy from Own New
Leek Building Society has announced a new partnership with Own New, enabling it to offer Own New's Rate Reducer mortgages through brokers.
The Rate Reducer mortgage is designed to lower interest rates and reduce monthly repayments for the initial fixed rate term. The scheme uses the incentives offered by housebuilders and offsets them against mortgage interest, reducing the buyer’s monthly mortgage payments for a fixed period of two or five years.
By investing homebuilder incentive budgets into the mortgage upfront, typically up to 5% of the property purchase price, initial repayments will be reduced for buyers.
Leek Building Society accepts family gifted deposits and offers reduced early repayment charges and no credit scoring, with thin credit files accepted and an automated DIP through to application via its MSO system.
Leek's 5% Rate Reducer products are available from 3.19% fixed for two years and 4.22% fixed for five years at 95% LTV.
3% products start from 4.28% fixed for two years and 4.60% fixed for five years.
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."
