Rate Reducer Explained
Lower rates, affordable homes. See how Rate Reducer makes owning a new build easier.
What It Is
A scheme offering lower initial mortgage interest rates on new builds, thanks to developer incentives paid to the lender.
Lower Monthly Payments
Enjoy significantly reduced mortgage payments during the initial fixed term (usually 2-5 years).
Increased Affordability
Lower payments make it easier to afford your desired home.
Who Can Benefit?
Available to first-time buyers and home movers purchasing a new build from a partner developer.
Full Ownership
This is not shared ownership. You own 100% of your home from day one.
How it Works
The developer contributes, the lender reduces your rate. The scheme works through a network of approved brokers and lenders.
Mortgages Available From Leading Lenders
Rate Reducer calculator
This calculator uses assumptions to estimate your monthly savings with Rate Reducer.
Frequently Asked Questions
Your common questions about Own New Rate Reducer answered.
Is Rate Reducer the same as Shared Ownership?
No, absolutely not. With Own New Rate Reducer, you own 100% of your home from day one, just like a standard mortgage. The scheme simply helps reduce your initial interest rate and monthly payments.
Who pays for the reduced rate?
The home builder provides a financial incentive (typically 3-5% of the property value) directly to the mortgage lender. The lender then takes this incentive into account and offers you a mortgage product with a lower interest rate for an initial period.
Can I choose any lender or broker?
Own New is only available through approved brokers, as they are specially trained on the scheme and can guide you through the specific products available. If your broker is not registered, ask them to get in touch with us and we can onboard them quickly. Approved brokers are independent, FCA regulated firms who have been trained on the specifics of the Rate Reducer scheme.
What happens after the initial reduced rate period ends?
After the initial fixed term (e.g. 2 or 5 years) when the reduced rate ends, your mortgage will typically revert to the lender's Standard Variable Rate (SVR) or another follow-on rate specified in your mortgage offer. As with any mortgage, you are free remortgage to a new deal before this happens.
Is it available on all new build properties?
The scheme is only available on specific plots offered by participating home builders. You should always check with the home builder's sales team to confirm if Rate Reducer is offered on the home you are interested in.
Is Cash Back available with Rate Reducer?
In addition to any cash back that your lender may offer, you may also be eligible for Own New Cash Back depending on your deposit and loan size. An approved broker can tell you if this may apply for you. In the event that it does, we pay Own New Cash Back via bank transfer the month after you complete the sale of your house.
Real stories, real savings.
Hear From Happy Homeowners
See how Own New Rate Reducer has helped people like you.
" We thought owning a new build was out of reach, but Rate Reducer made our monthly payments affordable. We're so happy in our new home! "
Sarah & Tom
Home Mover
" The process was surprisingly simple. Our broker explained everything clearly, and the lower rate gave us breathing room in our budget. "
Jack & Jacob
First-Time Buyers
" Getting onto the property ladder felt impossible with rising rates. Rate Reducer was the key that unlocked our first home purchase. "
Emily & Joseph
Home Mover
Explore Rate Reducer
Try out our calculator, or explore our map