Product designed for new build customers now available to more eligible brokers
Virgin Money has expanded access to its Rate Reducer mortgage product, developed in partnership with Own New, to a broader range of eligible brokers.
Launched just last week, the new product aims to improve the affordability and accessibility of new build homes for buyers by allowing a portion of the homebuilder’s incentive budget, often up to 5% of the purchase price, to be applied directly to the mortgage upfront. The approach helps to lower the initial monthly repayments for buyers.
The scheme is now available to anyone purchasing a new build property, including both first-time buyers and those moving homes. The mortgage option has garnered the support of over 60 builders, featuring prominent names such as Barratt Homes, Persimmon, Taylor Wimpey, Bellway, and Berkeley Homes.
The following options come with a £495 fee and a £250 cashback, alongside a 5% builder’s incentive:
- 60% loan-to-value (LTV) Own New Rate Reducer mortgage with a two-year fixed rate of 0.99%
- 75% LTV Own New Rate Reducer mortgage with a two-year fixed rate of 1.83%
- 60% LTV Own New Rate Reducer mortgage with a five-year fixed rate of 2.95%
- 75% LTV Own New Rate Reducer mortgage with a five-year fixed rate of 3.37%
- 90% LTV Own New Rate Reducer mortgage with a five-year fixed rate of 3.78%
These mortgage products are specifically designed for brokers with experience in new-build properties. Additionally, accreditation with Own New is required to access these offerings. Those without accreditation can apply for one, with further details available on the Own New website.
Standard new build policy and affordability assessments will be applied to all applications. Brokers are advised to submit their cases through Virgin Money Online, where they will find the option to choose an Own New payment route.
“Virgin Money is delighted to be a founding lender of the innovative Own New Rate Reducer, making it easier and more accessible for customers to afford a new-build home,” said Craig Calder, head of secured lending at Virgin Money.
“Buying a home is a major life event and this first-of-its-kind mortgage product will help customers feel happier about their big purchase, knowing that with the homebuilders’ incentive included, they have the certainty of a much lower fixed interest rate over the initial period of the mortgage.”
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