Darlington Building Society has partnered with Own New to launch a Rate Reducer new-build mortgage.
The new-build deal means that first-time buyers and homemovers can purchase a new build and have affordable monthly repayments with only a 5% deposit.
The product works by taking 5% value of the property, which is usually offered by housebuilders to buyers as an incentive in the form of cashback or deposit contribution, and invests it into the mortgage to lower the interest rate during the fixed rate period, making monthly repayments lower.
Features of Darlington Building Society’s Rate Reducer new-build mortgage include skilled worker visas up to 90% loan to value (LTV), consideration of non-guaranteed income, minor credit issues being considered, and family gifted deposits being acceptable.
The deal also goes up to 95% LTV and the mutual will credit search, not credit score.
Louise Thorpe, chief customer officer at Darlington Building Society, said, “Darlington is pleased to launch our Own New Rate Reducer mortgage, serving the needs of both existing and aspiring homeowners. We work closely with our broker partners to deliver products that are responsive to the changing needs of the modern mortgage market.
“Darlington’s Own New Rate Reducer proposition is unique in that we accept skilled worker visas and have adapted our affordability criteria in response to broker feedback and market conditions. It enables first-time buyers and homemovers to attain or maintain a lower rate and the lower repayments they’re accustomed to.”
Eliot Darcy, Own New’s founder, said: “We’re thrilled that Darlington Building Society is now offering Rate Reducer mortgages to their new-build customers nationwide. Our goal is to make buying a new home more affordable for everyone, and, with Darlington’s focus on making complex cases simple, particularly around skilled worker visas and affordability, this partnership allows us to bring the benefits of Rate Reducer to more buyers across the country.
“By reducing monthly mortgage repayments, we’re helping more people achieve the dream of homeownership, even in today’s challenging market.”
Own New and Darlington BS teamed up on a new-build 95% LTV mortgage earlier this year, but it was only available in certain regions, whereas this deal is available nationally.
Own New has teamed up with Virgin Money, Halifax, Berkeley Group, Furness BS, The Mortgage Mum and Perenna.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
