Launched in February 2024, Own New Rate Reducer is a scheme designed to help make new build homes more affordable by giving buyers access to lower-rate mortgages. Its aim is to make buying a new build more achievable, with lower monthly payments during an initial fixed period.

Available to both first-time buyers and home movers, the scheme is backed by more than 160 house builders across the UK. It works by using builder incentives in a different way. Rather than putting that contribution towards costs like legal fees, Stamp Duty or extras in the property, the builder puts in either 3% or 5% of the purchase price through Own New. That contribution is then passed to the lender, who uses it to reduce the starting mortgage rate for a set period, helping to lower the borrower’s monthly repayments.