Own New Rate Reducer Scheme

The Own New scheme was introduced in February 2024 to make it cheaper to buy a new build home by allowing homebuyers to pay a lower mortgage rate for the initial period.  

How does it work?

The developer will agree to contribute 3% or 5% of the purchase price. The lender will take this contribution and offset it against the mortgage interest to reduce your monthly payments for the first two or five years depending on the length of your initial term. 

These are traditional mortgages but must be accessed via Own New. 

Once you have found the home you want to purchase, you will arrange a mortgage via an approved mortgage broker and go through the usual new-build buying process. 

How much will I be paying?

The Own New rates start at 0.99% for a two-year fixed-rate mortgage with a 60% Loan to Value (LTV). The interest rates are higher if you have a higher LTV which is the percentage of borrowing you have against your property. For example, with a 60% LTV you own 40% of your home. 

According to Rightmove the average two-year fixed mortgage rate for homebuyers with a 40% deposit is 4.65%. For example if you have a £200,000 mortgage over 25 years your monthly payments will be as follows:

Rate Monthly Payments
0.99% £752
4.65% £1,129

It's worth noting that not everyone can access the lowest rate of 0.99%.

Eligibility Criteria

As long as you are buying a new build property, this scheme is open to:

  • First time buyers
  • Home movers
  • Those who have previously owned a property

As with any scheme it has pros and cons - your Mortgage Required broker can look at your circumstances to decide whether this scheme is right for you.