Interest rates down = interest in new homes up

With interest rates on 95% mortgages recently lowered, buyers could find that a new home is within their reach.

The reduced interest rates mean lower monthly repayments, making new Redrow homes in East Yorkshire and North Lincolnshire an attractive prospect for purchasers even if they don’t have substantial savings to put down as a deposit.

Customers with only a 5% deposit may be able to buy a new home with a 95% mortgage through the NewBuy initiative. It’s available on Redrow homes in Cottingham, East Yorkshire plus Grimsby and Barton-upon-Humber in North Lincolnshire

Lisa Burns-Kent, new homes operation manager at Mortgage Advice Bureau, explains: “Every penny counts when it comes to buying a new home. The good news is that several lenders have just reduced their interest rates on 95% mortgages through NewBuy so purchasers can look forward to lower monthly repayments.

“For example, savings of around £8,500 plus a mortgage for £161,499 would be enough to secure a new four-bedroom home at Kirk’s Paddock in Grimsby. And with a typical reduction of 0.3% in NewBuy interest rates at 95%, customers could save £30.94 a month on their repayments. The saving may seem small but could make all the difference and we would encourage those who thought their finances wouldn’t stack up to think again.”

The overall cost for comparison is 4.5% APR.

Redrow developments where NewBuy is available include Holtby Gardens in Cottingham, Kirk’s Paddock in Grimsby and Fox’s Fold in Barton-upon-Humber.

Patsy Aicken, sales director for Redrow Homes (Yorkshire), says: “NewBuy can help a whole host of buyers into one of our stylish new homes. First time buyers could find they’re able to buy sooner rather than later as the deposit required will be much lower than if they were buying on the open market. Friends could even club together and buy together, sharing the cost of the mortgage rather than paying rent,

“Those without substantial equity in the home they’re selling could also take advantage of the scheme; or if you’re yet to sell your current home you could consider converting to a buy to let mortgage, renting it out and then take out a 95% NewBuy mortgage for your brand new home.”

For more information about NewBuy see redrow.co.uk.