Furness Building Society has launched a new range of mortgages designed to help people buy new-build homes with just a 3% deposit.

The mortgages are available through the Own New scheme, which sees housebuilders contribute towards the cost of your mortgage. This contribution is then used to reduce your monthly payments for the first two years.

This means you could borrow more than you might expect, and reduce your monthly outgoings.

What is Own New?

“Own New” is a government-backed scheme designed to help people buy new-build homes. It is available to first-time buyers and home movers.

Under the scheme, the builder contributes a percentage of the property price to your mortgage. This contribution doesn’t have to be repaid and you will own 100% of your home.

What are the benefits of the new Furness mortgages?

The main benefits are:

• Lower deposit: You could get a mortgage with a deposit of just 3%.
• Lower monthly payments: The housebuilder’s contribution will be used to reduce your monthly payments for the first two years.
• Competitive rates: Rates on the new mortgages start from 3.29%.
• Available to a range of buyers: The mortgages are available to first-time buyers and home movers.

What are the interest rates?

The interest rates on the new mortgages are:

• 3.29% for a 2-year fixed rate mortgage at 80% LTV (loan-to-value) with a £999 fee.
• 3.77% for a 2-year fixed rate mortgage at 90% LTV with a £999 fee.
• 4.67% for a 2-year fixed rate mortgage at 95% LTV with no fee.

Chris Pickstone, head of mortgage strategy at Furness Building Society, said: “The scheme enables buyers to overcome two of the biggest obstacles when securing a home – affordability and deposit. Competitive rates means monthly repayments are reduced and 80-95% loan-to-value mortgages will mean it takes less time to save a deposit.”

Eliot Darcy, founder of Own New, said that the new mortgages would make it easier for people to buy their first home or move to a different property.

To find out more about the new Furness mortgages, speak to a mortgage broker.