Rate Reducer calculator

This calculator uses assumptions to estimate your monthly savings with Rate Reducer. Powered by New Homes Mortgage Helpline

Launched in February 2024, Own New Rate Reducer is a home buying scheme designed to offer some of the lowest rate mortgages on the market. It’s goal, to make buying a new build property more affordable and accessible. Working in partnership with the UK’s leading house builders, it allows clients to access a range of mortgages that offer a lower interest rate for a set period of time, resulting in lower monthly payments.

Own New is available to both first-time buyers and those planning to move and is supported by over 160 house builders throughout the UK. So how does it work? House builders are often able to offer “incentives” when you purchase a new build property. That might be money towards legal fees, stamp duty or finishing touches within the house. To access Own New, the builder contributes either 3% or 5% of the purchase price, which is passed to the lender through Own New. The lender then uses this contribution to reduce the initial interest rate, giving you a lower rate and more affordable monthly payments.

So, what’s the benefit? The obvious answer is lower monthly payments, but what does that mean to you?

One advantage of buying a new build is the condition of the property - you’re moving into a house that’s ready from day one, with no repairs or renovations needed. The monthly payment saving using Own New gives you the freedom to focus on the fun part - adding those finishing touches and personal elements that truly turn a house into a home.

Life is expensive - and at times, even more so than usual. From rising childcare expenses to a temporary dip in income while you train for a new role, finances can feel stretched. Own New helps bridge that gap, giving you the breathing space to live more comfortably while your income grows.

Rate Reducer is a low-rate mortgage for new build homes

Available through high street lenders for both first-time buyers and home movers, Rate Reducer could help to cut the cost of your monthly mortgage payments. Speak to one of our brokers today to see how much you could save.

What is Rate Reducer?
A scheme offering lower initial mortgage interest rates on new builds, made possible through a developer contribution paid directly to the lender.

Lower monthly payments
Enjoy significantly reduced mortgage payments during the initial fixed term (usually 2-5 years) giving you the freedom to focus on turning your house into a home.

Who can benefit?
Whether you’re a first-time buyer, upsizing or downsizing, everyone can benefit from Own New Rate Reducer when buying a new build home from a partner developer.

What happens after the initial reduced rate period ends?
After the initial fixed term 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 to remortgage to a new deal before this happens.

Testimonials

“To be honest, we would not have been able to move when we did if it wasn’t for the Rate Reducer scheme. Our mortgage on our previous home was expiring and the interest rate was doubling. We hated the fact that we would be pouring money down the drain in interest on a house which was too small but felt we didn’t have a choice but to stay and pay it.”

Emily Pearson and Joseph Charity (both 29), moved into their new home with their seven-month-old daughter, Elsie, and their Wire Fox Terrier, Daisy with the help of Rate Reducer.

“We were impressed by how Rate Reducer kept our costs manageable, it allowed us to move up to a four-bedroom home without over extending our budget.”

Adam and Kirsty upsized with the help of Rate Reducer shortly after their second child was born.