Barratt Homes offers new mortgage cutting interest rates for new build homes in Scarborough, Whitby and Bridlington

The Own New has launched a mortgage product that will bring lower rates for new home purchases. The scheme is available on developments in and around the Yorkshire coast, including St Johns View in Cayton; Abbey View in Whitby and The Sands in Bridlington.

The scheme works by using the incentive budgets that Barratt Homes offers to its customers to reduce their monthly mortgage payments over a fixed term.

For example, if the housebuilder offers a five percent incentive on a home, the Own New Rate Reducer takes this sum and directly offsets 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.

In addition to cutting monthly outgoings during that time, the customer will pay more off the capital value of their mortgage because the interest charged on the loan is lower.

Lenders will still carry out their usual affordability assessment, to check that the purchaser can afford repayments if the interest rate increases once the fixed-term benefit ends. Also, independent financial advice must be sought from a regulated mortgage broker who has completed additional training to access this scheme.

Barratt Developments worked alongside Own New to design Rate Reducer and was the first housebuilder to launch the scheme.

Paul Hogan, Sales Director at Barratt Homes Yorkshire East, said: “By launching the Own New Rate Reducer scheme we are helping more people to be able to afford a home within the area.

“The scheme will give buyers the financial boost that they need to get them onto the property ladder. They will be able to compare all the options available to them to make sure they get a mortgage product that is right for them and in their long-term financial interests.”

To access the Own New Rate Reducer, customers will need to speak to a Sales Adviser at one of Barratt Homes’ local developments. They will then be referred to a specialist mortgage broker, who will help progress their application.

Visit https://www.barratthomes.co.uk/offers/own-new-rate-reducer/ and to find out more.