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A guide to Own New mortgages
Introducing the Own New Rate Reducer Scheme: Making Homeownership More Accessible
For many aspiring homeowners, particularly first-time buyers, the journey onto the property ladder can feel increasingly out of reach. Rising property prices (1), higher mortgage rates, and the challenge of saving for a deposit have combined to create a more complex buying landscape than ever before. In response, innovative solutions are emerging to help bridge the gap (2). Chorley Building Society are pleased to partner with Own New, an initiative that’s purpose is to make monthly mortgage payments more affordable in the early years of homeownership, when finances are often at their most stretched.
By reducing initial interest rates, it offers buyers the opportunity to step into a new-build home.
What is the Own New Rate Reducer Scheme?
The Own New Rate Reducer scheme is a collaboration between participating homebuilders and lenders. It allows buyers of new-build properties to benefit from a lower mortgage interest rate for a fixed introductory period. This reduction is typically funded by a contribution from the developer, rather than the buyer, making it an attractive alternative to traditional incentives such as cashback or deposit contributions.
The result is simple but powerful: lower monthly repayments during the initial years of the mortgage, helping buyers better manage their budgets as they settle into their new home.
After the initial fixed rate term (typically 2 or 5 years) the homeowner would be able to remortgage their property either with the lender that provided the Own New mortgage or to a new lender.
Why it matters to buyers
Affordability remains one of the biggest barriers to homeownership. Even when buyers can secure a deposit, higher interest rates can significantly impact borrowing capacity and monthly repayments. The Own New Rate Reducer scheme directly addresses this challenge by easing the cost burden upfront.
For many, this can mean:
- Reduced financial pressure in the early years of ownership
- Greater confidence in meeting monthly mortgage commitments during the early years of homeownership
This is particularly beneficial for first-time buyers, who are often balancing moving costs, furnishing a home, and adjusting to new financial responsibilities all at once.
Supporting a smoother start
The early years of a mortgage are often the most financially demanding. By lowering payments at the outset, for an initial period, the scheme provides breathing space for homeowners to build financial resilience. Whether it’s setting aside savings, managing other expenses, or simply enjoying the transition into homeownership, this support can make a meaningful difference.
Looking ahead
The Own New Rate Reducer scheme represents a fresh approach to reducing monthly mortgage payments in the early years of homeownership. While it may not be the right solution for everyone, it offers a compelling option for those purchasing new-build homes and seeking lower initial repayments.
As with any financial decision, understanding the details is key. In the following section, the Own New team have answered some of the most frequently asked questions about the scheme — helping you explore whether it could be the right fit for your homeownership journey.
Own New & Chorley Building Society Partnership FAQs
What is the partnership between Own New and Chorley Building Society?
Own New has partnered with Chorley Building Society to expand access to significantly lower mortgage rates for a set period of time, for buyers of new build homes. By using the Own New scheme alongside Chorley’s mortgage products, buyers can purchase a home with the confidence of highly accessible, lower monthly repayments in the early years of homeownership.
Who is this mortgage scheme for?
This scheme is particularly relevant for first-time buyers and home movers purchasing a selected new build home. It is designed to support buyers who want to maximize their monthly budget and enjoy the financial breathing room that comes with a lower-rate mortgage during their initial fixed period.
How does the scheme lower my mortgage rate?
When a builder offers a 5% incentive, Own New ensures that 100% of that value goes directly to the buyer to pay down the interest on their mortgage. The incentive is applied pound-for-pound against the interest you would otherwise pay, resulting in significantly lower monthly payments.
What happens if the full incentive isn't used for the rate reduction?
If, for any reason, the full 5% incentive isn't used to reduce the mortgage rate, the buyer is topped up with cashback. This ensures you always receive 100% of the builder's incentive value.
Are there any hidden fees?
No. There are no Own New fees and no hidden deductions. The process is simple, transparent, and designed entirely for the buyer's benefit.
Chorley Building Society pay Own New a fee upon completion of the mortgage. For details of this, please ask your mortgage broker.
Why partner with Chorley Building Society?
Chorley Building Society has a long-standing focus on responsible lending and supporting borrowers who may not always fit a high street mould. Their manual underwriting team assesses applications based on individual circumstances rather than relying solely on automated decisions, making it a smoother process to navigate.
What does this mean for brokers and builders?
● For brokers: It adds another excellent lender option for clients who want to prioritise lower monthly payments, in the first few years of the mortgage, backed by individualised underwriting.
● For builders: The Own New scheme offers a powerful tool to widen the pool of potential buyers and convert interest into completed sales without increasing headline prices or relying solely on traditional deposit contributions.
General Own New FAQs
What is Own New?
Own New is a platform for new build homes who work with participating builders, brokers, and lenders so that builder incentives can be used to support lower monthly mortgage payments, for an initial period. Own New is supported by the UK Future Fund, Pinsent Masons LLP, and Capita PLC.
How does Own New Rate Reducer work?
Own New Rate Reducer uses a 5% builder incentive to reduce the mortgage interest rate as much as possible. This can lower the monthly payment significantly during the initial mortgage period.
Do I get 100% of the builder incentive?
Yes. Own New is designed so the full builder incentive works for the buyer. Depending on the product and lender structure, that benefit may appear through a lower rate, cashback, deposit support, or a combination of these. Chorley Building Society will pay a fee to Own New upon completion of the mortgage. Your mortgage broker can provide details.
What is Own New Cashback and how is it paid?
Own New Cashback ensures you benefit from 100% of the incentive offered by your builder. The amount you receive depends on your deposit size, mortgage term, and house price. An Own New registered broker can help you understand how much cashback you may get, and the amount will be confirmed once this information is received, from your lender so you know exactly what to expect. It is paid no later than two months after completion and can be paid by bank transfer or cheque depending on your preference.
Do Own New provide my mortgage?
No. The mortgage is provided and administered by a participating lender, just like any other mortgage. Own New work behind the scenes with your builder and lender to make the subsidised rates available to you.
Which lenders are on the scheme?
Own New work with both high street and specialist lenders, and these often change depending on market conditions. Talk to a Preferred Broker to understand which lender options are available to you currently.
Is Own New available to First Time Buyers?
The scheme is available to all types of buyers, both First Time Buyers and Home Movers. However, the mortgages are offered by Own New’s partner lenders, and their lending criteria will apply. Talk to a Preferred Broker to discuss your personal circumstances and they can advise you appropriately.
Do I own 100% of my home?
Yes. Own New is not shared ownership. You buy and own 100% of your home from day one, subject to the normal mortgage and conveyancing process.
Is Own New available on every new build home?
No. Availability depends on the builder, the development, and sometimes the specific plot, so be sure to search the map, or ask your homebuilder if it is available.
(1) https://hoa.org.uk/news/too-expensive-to-move/
Your home may be repossessed if you do not keep up repayments on your mortgage
Not every new build home will qualify for Own New, eligibility can be checked with your homebuilder.
After the initial incentive period, your monthly mortgage payment is likely to increase.