Property value and mortgage rate guarantees from Stewart Milne Homes

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by Lin Freestone

Stewart Milne Homes, a privately-owned housebuilder based in Aberdeen, has introduced two new products to enable potential homeowners to buy with confidence.

The managing director of the company, John Slater, has listened to what people have told the company and devised two incentives to provide a comfort factor around risk in the short-term, and longer term stability in terms of the property value.

The products are aimed at affordability, by reducing risk from mortgage rate increases in the first two years of owning a Stewart Milne home; and at security, by guaranteeing the value of the property in the medium-term.

The five star offer from Stewart Milne features two incentive products at selected developments.

The Home Value Guarantee reflects the company’s confidence in the quality of its homes and offers buyers confidence that the property value will not decrease if it is sold between three and six years after purchase.

The company will take an active part in selling the property to ensure maximum sales value, and will cover the difference between the original price paid and the price received on completion of the sale.

The second product, a Mortgage Rate Guarantee, is designed to ease uncertainty around interest rates in the early years of a mortgage.

If interest rates increase above the initial rate set at arrangement, Stewart Milne Homes will cover the difference irrespective of fluctuations in the financial markets. The package is valid for two years, based on lenders’ increases that correspond to Bank of England base rate increases of 0.5% upwards.

It is anticipated that the guarantees offered by these incentives will make it easier for consumers to satisfy their demand for new homes in the current economic climate.