Perenna will pass on the reduction across the whole mortgage term, while other participating lenders offer the lower rate in the initial fixed rate term.
Through the scheme, the lender’s minimum term is 25 years and the minimum loan to value (LTV) is 60%.
Rates on the scheme are 0.5% lower than its standard mortgage products at 5.26% and go up to 90% LTV over a term of 30 years with a product fee.
Participating housebuilders include Barratt Developments, Persimmon, Taylor Wimpey, Bellway, and Berkeley Homes.
Own New has teamed up with Darlington Building Society, Virgin Money, Halifax and Furness Building Society to bring out specific products.
The Mortgage Mum has also teamed up with Own New.
Colin Bell (pictured), founder and COO of Perenna, said: “We are excited to combine the affordability boosting powers of the flexible Perenna Mortgage with the unique scheme from Own New. This rate reduction will add further affordability, allowing buyers to borrow more as the reduction is for the life of the mortgage.
“Together we will enable more people into homeownership, and work towards creating a nation of happy homeowners. Combining rates fixed for the whole term, with no exit charges after five years, gives people stability and flexibility to make changes when the time suits them.”
Eliot Darcy, founder of Own New, added: “Perenna’s mortgage products will bring a new dimension to Own New Rate Reducer, providing new homes buyers with an opportunity to reduce their mortgage rates over a longer term.
“This is an important moment that further enhances the options available to people who are looking to buy an energy-efficient new home. This will help to drive consumer confidence and to support the housebuilding industry.”
Perenna has been broadening its proposition, adding retirement interest-only (RIO) and interest-only options earlier this year. It has also received funding for green mortgage development.
