A new scheme aims to make homes more affordable
Darlington Building Society has unveiled a new suite of mortgage products aimed at supporting new-build home buyers, including first-time purchasers and individuals on skilled worker or spousal visas. Launched Friday, the initiative is a collaboration with Own New, a platform dedicated to facilitating access to new-build properties.
According to a news release, the new offerings, known as the Own New Rate Reducer scheme, provide up to 95% loan-to-value (LTV) for new-build purchases across the United Kingdom, excluding London. These products are designed to lessen monthly repayments, with rates beginning at 4.19%. The rates are tied to developer incentive schemes offering either a 3% or 5% contribution. For instance, a five-year fixed-rate option with a 5% incentive is available at 4.19%, while a 3% incentive leads to a rate of 4.49%.
Darlington Building Society has also introduced specialized Rate Reducer products for those on skilled worker or spousal visas. These include a five-year fixed rate of 4.99% with a 3% incentive and 4.69% with a 5% incentive. This move aligns with the Society’s flexible visa criteria, which aim to remove common obstacles for these borrowers. The Society does not impose a minimum income threshold for 95% LTV applications nor require a minimum period of UK residency, assessing eligibility through a credit search instead of a traditional credit score.
Chris Blewitt (pictured), head of intermediary distribution at Darlington Building Society, noted the strong demand for new-build homes among buyers who face challenges with mainstream lenders. He emphasized the rise in enquiries from skilled workers and foreign nationals seeking more flexible affordability assessments. “By partnering with Own New, we’re giving brokers a practical option to support these buyers with competitive rates and lower monthly payments,” Blewitt stated, “It builds on the Society’s wider strategy to support underserved borrower groups and respond directly to what intermediaries are seeing on the ground.”
Eliot Darcy, founder of Own New, highlighted that affordability remains a significant barrier for many buyers. He explained that the Rate Reducer scheme directs housebuilder incentives directly into the mortgage, allowing buyers to benefit from lower monthly repayments from the outset. “Channelling housebuilder incentives into the mortgage itself, rather than upfront costs, means buyers can access lower monthly repayments from day one,” Darcy added.
The Own New Rate Reducer scheme currently has the support of over 150 developers across the UK.
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