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Scotia Partner with 'Own New' To Bring Affordable Mortgages to Customers

2nd Apr, 2024


Scotia Homes have partnered with Own New to bring you a simpler, hassle-free way to get an affordable mortgage on the new build home of your dreams.

Through Own New, prospective homeowners can choose from two remarkable schemes to make owning a brand-new home easier and more affordable than ever before: the Deposit Drop and the Rate Reducer.

Sales Manager, Lynne Begbie, of Scotia Homes spoke of the recent partnership with Own New: "We are pleased to be bringing potential buyers access to lower mortgage rates.

"Partnering with Own New provides a fantastic opportunity for our customers; not only does it alleviate the pressure of rising interest rates, it gives them access to highly competitive mortgage deals which makes purchasing one of our new build homes so much easier.

"We want to do the best by our customers, from working with them to find their dream home on the most ideal plot and development, to supporting their decisions on options and extras and affordability. This partnership merely takes the financial pressure off a little more and future homeowners can really begin to enjoy the home buying journey."

Eliot Darcy, founder of Own New, said: “Higher interest rates combined with high inflation and the resulting squeeze on household budgets have made it more difficult for people to purchase their next home.

"With the support of our house builder partners like Scotia Homes, the Rate Reducer scheme is making it possible for buyers to purchase the home of their dreams, while keeping monthly mortgage repayments to a level they can afford.”


Hear from the Experts

Rate Reducer from Own New takes the contribution from Scotia Homes and uses it to gain a lower fixed rate for your mortgage. Cameron McLean, Director of McLean Financial Services, provides an example of how Rate Reducer could work in reality:

"Say you're looking at a new build and it's a builder who's signed up to Own New's Rate Reducer. Your purchase price is £399,950 and the lender is Virgin Money. The minimum deposit you, as the purchaser, needs to put down is 10%. And the builder has agreed a cash contribution of 5% of the purchase price.

"Own New pays the lender that 5% from the builder to reduce the overall rate.

Purchase price £399,950

Your deposit £39,995

Builder contribution £19,997.50

Total Loan amount is £339,957.50

"Using rate reducer the Virgin 5 year fixed rate would 3.78% with a £495 arrangement fee and £250 cashback. Over a 25 year term, the monthly repayment amount is £1859.38. At the end of the 5 year fixed rate the outstanding mortgage balance is £312,773.25.

"Looking at what's available now, Clydesdale are offering a 5 year fixed rate of 4.59% with a £1,499 arrangement fee (added to the loan) and a £299 valuation fee (paid upfront). Clydesdale is not part of Rate Reducer scheme. Based on a 25 year term, the monthly repayment is £2,027.59. At the end of the fixed rate of 5 years the outstanding mortgage balance is £318,079.30.

"The Virgin deal using Rate Reducer is £168.21 than Clydesdale. And at the end of fixed rate with Virgin there is less outstanding on the overall balance too.

Rate Reducer applies only to builders who have signed up to the scheme. More lenders are joining the scheme as it grows. For us giving mortgage advice, this opens up more options for those buying. And the bigger the deposit, the bigger the rate reduction. It makes mortgages more affordable and also allows buyers to pay off more the mortgage before the fixed rate ends. It is crucial to speak to someone who knows how the Rate Reducer works and how it can be applied to your new build purchase."

These rates are correct at time of publishing - 14 March 2024.


Why "Own New" is Your Ideal Choice:

Affordability: Scotia Homes is committed to making homeownership accessible by easing financial barriers, offering quality homes for everyone.

Lower monthly repayments: Choose Rate Reducer and benefit from reduced interest rates, resulting in more manageable monthly payments.

Ease of entry: Say goodbye to the traditional deposit hurdles and step confidently into your new home with Deposit Drop.

Financial stability: Ease the impact of rising living costs with lower monthly payments thanks to Rate Reducer, or less pressure to save for a larger deposit with Deposit Drop.


FAQs

Who’s eligible to benefit from Own New? And how does it work?

This scheme is open to anyone purchasing a new build property including first time buyers and home movers. Own New works with home builders and lenders behind the scenes, taking a fee from the home builders and using this with the lender to facilitate access to either scheme.

What properties are Deposit Drop and Rate Reducer available on?

Please speak to your Sales Advisor for information on which properties offer the Own New scheme.

Is it possible to combine Deposit Drop and Rate Reducer?

It's not currently possible to combine the two mortgage products.

Who will my mortgage be with?

Your mortgage is directly with the lender. Own New is the platform that sits between your mortgage broker and the lender to ensure you get a great deal.

How do I get started? How do I access this service?

Once you’ve found one of our properties you love, your Sales Advisor can recommend an Own New approved mortgage broker who will provide independent advice and guide you through the mortgage application process.

Start your future here with Scotia Homes Own New Scheme!

For more information on Own New, click here to visit their website.

For more information on any of our developments in Oldmeldrum, Tarves, Kincraig, Aviemore, Blairgowrie, Brechin or Arbroath, please email info@scotia-homes.co.uk or call 01358 722441.

View developments here.