Own New has partnered with Kensington Mortgages to provide lower-rate mortgage products.
Through the partnership, Kensington Mortgages will offer an Own New Rate Reducer mortgage up to 90% loan to value (LTV) and loan amounts of up to £1m.
The product has a six-month offer period, with the option to extend it for a further six months to allow for new-build property timelines.
Kensington Mortgages will offer a reduced rate on a two- or five-year fixed period, and the product will be open to borrowers who do not meet high street criteria and are buying a new-build property.
This will include contractors and self-employed workers with limited or no credit history, borrowers with non-standard income, and people with credit blips that are more than 36 months old.
Up to 75% LTV, the two-year fix has a rate of 3.2%, compared to its standard mortgage rate of 6.39%. This goes up to 5.55% for the Own New product at 85-90% LTV, lower than the standard 7.14% rate.
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For a five-year fixed rate up to 75% LTV, the Own New product is priced at 4.36%, compared to the standard rate of 5.64%. At 85-90% LTV, this is priced at 6.1%, compared to 6.74%.
The dedicated new-build underwriting team at Kensington Mortgages will handle each case.
Vicki Harris (pictured), chief commercial officer at Kensington Mortgages, said: “As a specialist lender, we’re proud to offer Own New Rate Reducer for either an initial two- or five-year fixed term.
“Our goal is to provide a viable path to homeownership for those wishing to purchase a new build and whose unique financial circumstances may otherwise limit their options. This partnership allows us to bring lower rates to a broader range of buyers, giving them greater security and flexibility during the critical early years.”
Eliot Darcy, founder and CEO of Own New, said: “Kensington’s Rate Reducer option offers a fresh opportunity for borrowers with complex needs, giving them the chance to secure lower monthly payments in the critical early years.
“We are excited to partner with a specialist lender committed to improving accessibility for all new-build buyers.”
Own New launched in 2022 and its Rate Reducer proposition invests housebuilder incentives into the mortgage to allow lenders to offer lower rates.
Speaking to Mortgage Solutions this year, founder Darcy said the firm wanted to make it easier for people to buy new-build homes.
