1) You’re looking to buy a new build home
Own New Rate Reducer is only available on mortgages for new build properties, as the way it works is the builder gives an incentive (either 3% or 5% of the new home’s value), which is deducted from the repayments during the first two or five years of the mortgage.
2) You’re getting married in the next few years
If you have a big life event such as a wedding coming up, you’re going to need all the extra money you can get. Using Own New Rate Reducer would allow you to save the extra cash in the short term, then once the wedding bells (and bills!) have passed you’ll be able to make the repayments at the post-incentive rate.
3) You’ve got a loan or car finance to pay off
If you have a car on finance or a loan that will be paid off in the next five years, that extra saving on mortgage repayments could be the difference between a comfortable monthly budget and a tight one. Depending how long you have left and what the monthly repayments are, it could be worth considering Own New Rate Reducer to cover the time period until the credit repayments finish, freeing up the extra cash for when standard mortgage rates resume.
4) You’re going to be seeing a temporary income reduction
This could be you or your partner going on maternity leave, going back to full time education or taking a career break; anything that would mean you have a reduced household income that is temporary. Bear in mind you would still need to be approved for the normal mortgage repayments (before the incentive is applied), so you need to still have your full income when you take out the mortgage.
However, the Own New Rate Reducer can be a useful way to temporarily reduce your household expenses over a two or five year term, meaning you have less to pay when your income is later reduced.
5) You just want to enjoy some more spare cash every month!
Own New Rate Reducer is a great move if you just want to enjoy more extra cash every month for the next two or five years! The extra saving on your mortgage could pay for a holiday, new furniture or just go into savings for a rainy day.
