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Furness Building Society offers 95% mortgages for new homes with Own New Rate Reducer

Own New Rate Reducer can now offer lower-rate mortgages to people buying new homes with a deposit of just five per cent, thanks to its partnership with Furness Building Society.

The lender this week (18/3) launched Own New Rate Reducer mortgages for customers borrowing at 80, 90 and 95 per cent loan to value.

Own New Rate Reducer launched last month and more than 250 housebuilders across the UK have registered. It uses the incentives offered by housebuilders and offsets them against mortgage interest, reducing the buyer’s monthly mortgage payments for a fixed period of two or five years.

Furness has launched three new two-year fixed-rate Own New Rate Reducer mortgage products:

• 2.11 per cent (£995 fee) for a mortgage of up to 80 per cent loan-to-value (LTV)

• 2.66 per cent (£995 fee) for up to 90 per cent LTV

• 3.56 per cent (no fee) for up to 95 per cent LTV.

Arranged exclusively through brokers, these mortgages are available for both first-time buyers and home movers.

Brokers will help their buyers apply for a Furness mortgage in the usual way and applicants will be subject to a standard affordability assessment by the building society’s expert underwriting team. All brokers are required to register with the Own New broker panel to be eligible.

Alasdair McDonald, Head of Intermediaries at Furness Building Society, said: “As one of the first lenders in the UK to participate in the Own New Rate Reducer scheme, we are pleased to be helping brokers empower their customers to take their first step onto, or next step up, the property ladder sooner than they had anticipated.

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“By offering Own New Rate Reducer mortgages at Furness, we are equipping our intermediary partners with the means to unlock the dream of a new home for many more buyers.”

Eliot Darcy, founder of Own New, said: “It is great to welcome Furness Building Society on board with the Own New Rate Reducer scheme. The principle behind the initiative is a very simple one – to introduce a regular mortgage with lower rates to help more people either buy their first home or make the move they need to a different property.

“We’re particularly pleased that Furness is the first lender to offer Own New Rate Reducer with a 95 per cent mortgage, which will make it this innovative scheme accessible for buyers with lower deposits.”

Furness Building Society joins Halifax and Virgin Money in offering loans through Own New Rate Reducer.

Housebuilders including Barratt Developments, Bellway, Berkeley Homes, Taylor Wimpey, Persimmon and Miller Homes are already selling homes through the scheme.

Own New was founded in 2022 by Eliot, who set out to create a more accessible system of mortgage lending after being frustrated when he bought his first home. Despite having a stable income, he struggled to secure a mortgage, while friends with wealthy parents enjoyed a much more straightforward route to buying.

Own New works closely with each lender, with a target – to give customers the full benefit of the developer contribution by reducing their interest payments by at least the same value as the incentive.

More information about participating new-build developments can be found at ownnew.co.uk.

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