Buying a house never came cheap — but today’s intense mortgage rates are keeping many shoppers at bay. Whether you’re a new buyer or just looking to upgrade, the Own New Rate Reducer could be the magic bullet you’ve been hoping for.
It’s an entirely new scheme that helps buying customers get lower mortgage rates for new-build homes — sometimes as low as 0.99%. But what is it, how does it work, who can get it, and how’s the catch? Let’s explain it in plain English.
How Does Own New Rate Reducer Work?
Briefly, Own New Rate Reducer allows housebuilders to use their usual buyer incentives — such as covering stamp duty or legal fees — in the form of reducing the buyer’s mortgage interest rate instead.
Example:
Let’s say a builder will offer a 5% incentive on a £350,000 home. Instead of getting this in cashback or with free carpets, the Rate Reducer scheme passes that advantage over to repay your mortgage interest. And the result?
- A lower monthly payment
- You pay off your capital sooner
- More breathing space in your finances earlier in your mortgage
Why it matters: For others, this translates to being able to purchase a home they otherwise would not — or moving ahead of schedule.
What Kind of Rates Can I Get?
Here’s where it gets interesting. Depending on the deposit you pay, lender, and builder incentive, you might be eligible for:
- Mortgage rates from just 0.99% (typically for buyers with substantial equity)
- Monthly savings of hundreds of pounds
- Fixed terms of 2 or 5 years, depending on the lender
Example Scenario (from Own New):
- Mortgage: £350,000 at 60% LTV
- Rate reduced from 4.79% to 0.99% (2-year fix)
- Monthly saving: £756
It’s a game-changer, especially compared to the average 5.45% 2-year fixed rate currently available on 90% LTV mortgages
Check Moneyfacts for current mortgage rate comparisons
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Am I too old to get a mortgage?
Who Can Apply?
Good news — the Own New Rate Reducer is available to:
- First-time buyers
- Home movers
- Buyers with small or large deposits
You also own 100% of your home — this is not a shared ownership scheme.
Eligibility is subject to affordability checks, and you’ll need to work with a mortgage broker who has been trained to offer Rate Reducer products.
Which Lenders Are Involved?
Several big names are already signed up, including:
- Halifax
- Virgin Money
- Furness Building Society
- Gen H
- Perenna
More lenders will follow as the scheme grows in popularity.
You can search participating lenders or shop around deals directly on Own New’s own website or through your builder’s nominated broker.
Which Housebuilders Are Joining Up?
Over 200 housebuilders join the scheme — including:
- Barratt Developments
- Persimmon Homes
- Taylor Wimpey
- Bellway
- Berkeley Homes
If you’ve seen a new-build property that you like, the builder will show you to a Rate Reducer products-trained broker.
Is There a Catch?
No catch — but something to keep in mind.
When the fixed-rate term ends (after 2 or 5 years), your mortgage will transfer to the usual variable rate unless you remortgage. You’ll have to:
- Budget for possible increases in monthly payments
- Undergo usual affordability checks before being approved
- Talk over your future plans with a mortgage adviser
You can link here to MoneyHelper for general mortgage advice
How Can I Obtain an Own New Rate Reducer?
Here’s what to do step by step:
- Choose a new-build home from one of our partner housebuilders
- Talk over whether or not the property is on offer for Own New Rate Reducer
- The builder introduces you to an experienced mortgage broker
- The broker discusses your options and helps you apply
It’s that simple. And unlike shared equity or Help to Buy, you don’t need to sacrifice any ownership.
Final Thoughts: Is Own New Rate Reducer Right for You?
If rising mortgage interest rates have made you hesitate to move or priced your dream home beyond your budget, Own New Rate Reducer could be the solution.
It cuts payments when they hurt the most — at the beginning of homeownership. And with rates below 1%, one of the best offers going around.
Want to take a look at your alternatives?
Find a new-home property, inquire from your builder whether Rate Reducer is available, and speak with a specialist broker who can walk you through it.
