The new scheme, labelled Rate Reducer, launched this month with Halifax, Virgin Money and Barratt Developments. For some buyers with a high deposit or equity, rates below 1.89 per cent could be available. The scheme will offer more power to consumers over their monthly outgoings, which in turn will give many more people the confidence to make their first or next home move.
“Buying a home is a major life event and this first-of-its-kind mortgage product will help customers feel happier about their big purchase, knowing that they have the certainty of a lower fixed interest rate over the initial period of the mortgage. By using the homebuilder incentive budget to offset initial mortgage repayments, buyers can focus on other costs like furnishings and decoration, to make their house a home.