Darlington Building Society has partnered with Own New to launch a new Rate Reducer mortgage.

Housebuilders typically offer up to 5% of the value of the property as an incentive to buyers, such as cashback or as a deposit contribution, to people buying new-build homes.

With the new Rate Reducer mortgages, this is instead invested into the mortgage to lower the interest rate during the fixed-rate period, and, according to Darlington BS, unlocking a more affordable mortgage with lower monthly repayments for the initial term.

Key features include skilled Worker VISAs eligible up to 90% LTV; 95% LTV new build mortgage

non-guaranteed income considered (overtime, bonus, commission); minor credit issues considered; family gifted deposits acceptable and the product is available nationally

Commenting on the launch Darlington BS’s chief customer officer Louise Thorpe said: “We work closely with our broker partners to deliver products that are responsive to the changing needs of the modern mortgage market.

“Darlington’s Own New Rate Reducer proposition is unique in that we accept Skilled Worker VISAs and have adapted our affordability criteria in response to broker feedback and market conditions. It enables first-time buyers and home movers to attain or maintain a lower rate and the lower repayments they’re accustomed to.”