If you’re looking at a new build home and the mortgage interest rate is pushing your monthly payments out of reach, you’re not alone. For many buyers, the numbers don’t stack up, even with a decent deposit saved.
That’s where the Own New Rate Reducer scheme comes in. It’s designed to cut your mortgage rate for an initial term, which means you could see lower monthly mortgage payments right from the start. Not through gimmicks or shared ownership, but through a genuine mortgage lender-backed option, available exclusively through accredited brokers like us.
We’re here to guide you through our new rate reducer scheme, explain what’s possible, and help you get the best deal for your situation.
What Is the Own New Rate Reducer Scheme?
The Own New Rate Reducer mortgage scheme is a way to reduce your mortgage interest rate when buying a new build home, making your monthly payments more affordable for the first few years.
Here’s how it works:
- The property builder contributes part of the purchase price directly to the lender.
- The lender then offers a lower mortgage rate for a fixed term (usually 2 or 5 years).
- You still own 100% of the property, with no shared ownership or government loan involved.
It’s a simple idea that offers real savings. Halifax and Virgin Money were the original mortgage lenders; however, to launch the scheme, several other lenders now also offer it, and it’s only available through accredited mortgage brokers, like YesCanDo.
How Does the Rate Reducer Scheme Work?
The Own New scheme works by using a contribution from the developer to reduce your mortgage interest rate for an initial period. It’s available through selected lenders on eligible new build homes.
Here’s how the Rate Reducer works step by step:
- You buy a new build property from a participating house builder.
- The builder contributes around 3–5% of the purchase price.
- That contribution is passed to the mortgage lender, not to you.
- The lender then offers a lower mortgage interest rate for the first two or five years.
- You’ll benefit from more mortgage options that could lead to lower mortgage rates and lower monthly payments and possible significant savings during those early years.
The actual rate you get depends on things like your deposit, the lender, and how much you’re borrowing.
Some buyers have even secured deals under 1%, especially when working with lenders like Halifax or Virgin Money.
Once that initial period ends, your mortgage will move onto the lender’s usual rate unless you switch. The lower rate doesn’t last forever, but for many, the savings at the start make a real difference.
This setup isn’t available on the open mortgage market, it needs to be arranged by a mortgage broker accredited to offer the Own New rate reducer mortgage scheme.
Why You Need a Mortgage Broker for the Own New Rate Reducer
While the Own New Rate Reducer scheme is built around your new build purchase, the process isn’t something you can access by walking into a bank. This is a specialist product that’s only available through selected mortgage brokers who’ve been trained and accredited by Own New.
That’s because it’s not just about choosing the lowest interest rate. It’s about structuring the mortgage to match your deposit, your income, and how long you plan to stay in the home. That takes proper advice, not guesswork or generic tools.
As a broker accredited by Own New, we:
- Explain how the Own New Rate Reducer fits your situation
- Work directly with the developer and mortgage lender
- Handle the full application, including any forms needed from your builder
- Help you compare the own new scheme mortgage rates and deals beyond the scheme, too
Whether you’re a first-time buyer or moving from another property, our role is to give you clear guidance, check what you’re eligible for, and help you take advantage of lower mortgage rates without the stress.
Types of Own New Mortgages Available Through the Scheme
The Own New rate reducer scheme offers two different options. They’re not the same, and you’ll need to choose one. You can’t combine them, so it’s worth knowing how each one works — and which one might suit your situation better.
1. Rate Reducer Scheme
The Own New rate reducer scheme is the most popular option. This is because it focuses on reducing your interest rate for a fixed term at the start of your mortgage.
- You get a lower interest rate for the first 2 or 5 years
- Your monthly payments are reduced during this period
- You still own 100% of the home
It’s designed for buyers who want lower monthly payments early on, which can make budgeting easier while settling into a new build property.
2. Deposit Drop Scheme
The Own New deposit drop scheme is more about helping buyers who haven’t saved a full deposit yet. Here’s how this version works:
- The developer covers part of the upfront cost
- You can access mortgages with just a 5% deposit
- You still get a competitive rate, though not as low as with the Rate Reducer
If you already have a good deposit saved, the Rate Reducer usually offers better overall value. For some first-time buyers, the Deposit Drop option makes it possible to buy sooner, even if saving for a bigger deposit has been tough.
Whatever route makes the most sense for you, we’ll talk you through it. No fluff, just honest advice to help you find a mortgage product that works now and still feels right later on.
Who Can Use the Own New Rate Reducer Scheme?
The Own New Rate Reducer is designed to help a wide range of buyers, not just those stepping onto the property ladder for the first time. Whether you’re a first-time buyer or a home mover, you could qualify, as long as the property and mortgage meet certain conditions.
You may be eligible if:
- You’re buying a new build home from a participating developer
- You have at least a 5% deposit
- You pass standard mortgage lender affordability checks
- You’re applying through an accredited mortgage broker
The scheme is available for both employed and self-employed buyers. There’s no cap on income or property value, and it’s open to existing homeowners too, as long as the home you’re buying is part of the Own New network.
You won’t need to apply for the scheme separately. Once we’ve checked the property and your eligibility, we’ll handle the process with the developer and the mortgage provider behind the scenes.
Why Use the Own New Rate Reducer Scheme?
The Own New Rate Reducer offers one of the most practical ways to cut your mortgage payments without giving up ownership or flexibility. It’s simple, transparent, and doesn’t require a government loan or shared equity.
Key benefits:
- Lower interest rate for the first 2 or 5 years
- Reduced monthly mortgage payments during that time
- No need for extra incentives from the developer
- Works with mainstream lenders like Virgin Money and Halifax
- Available on a wide range of new build homes across the UK
Whether you’re trying to make your budget stretch, free up some cash for furniture or renovation, or get a better deal at a time when mortgage rates are high, this scheme offers an innovative, flexible solution.
But like any mortgage deal, it’s not one-size-fits-all. Here’s what our Own New adviser, Grant, had to say:
“It’s a clever setup, but it won’t suit everyone. The scheme tends to favour energy-efficient homes, which lenders are more comfortable with, but that doesn’t always mean you’ll save the most overall. In some cases, a standard deal without the scheme could actually work out better over the full term. It’s worth checking both routes before committing.”
– Grant, Own New Accredited Adviser at YesCanDo Money
Remember, you don’t have to navigate it alone. As an accredited independent mortgage broker, we’ll give you independent mortgage advice and make sure the deal fits you, not just the lender.
Own New Rate Reducer FAQs
Can I use the Rate Reducer if I’m not a first time buyer?
Yes. The scheme is open to home movers and existing homeowners, not just first-time buyers.
Do I need to buy from a specific developer?
You’ll need to choose a home from a participating developer. We’ll check that for you before you apply.
What happens after the lower rate ends?
When your fixed term ends, your rate will move to your lender’s standard deal, just like any other mortgage. We’ll help you review your options before that point.
Is this the same as a government scheme?
No, it’s run privately in partnership with house builders and lenders. You own 100% of the home and don’t share equity.
Do all home builders offer the Own New Rate Reducer?
Not all home builders are signed up to the scheme. It depends on who you’re buying from and where they’re building. The Own New Rate Reducer is only available on eligible build homes from developers who partner with the scheme. We’ll check this for you early on, so you don’t waste time on homes that aren’t included.
Want to See If the Rate Reducer Works for You?
Whether you’re comparing mortgage rates and deals or just exploring what’s possible on a new build, we’re here to help. As an accredited Own New mortgage broker, we’ll check your eligibility, explain how the scheme could affect your monthly payments, and guide you through the whole process — no pressure, no jargon.
You’ll get clear advice based on what’s right for you and the home you’ve chosen. And if the Rate Reducer isn’t the best fit, we’ll help you find what is.
Let’s find out what you could save. Get in touch or book a call to start your mortgage search.
