A scheme designed to make mortgages more affordable to people buying new build homes has been launched nationwide. Funded through a subsidy paid for by the builder, ‘Rate Reducer’ is a unique mortgage that provides movers and first-time buyers with access to lower interest rates and reduced monthly payments during the initial mortgage period.

Nicola Wroot, Sales & Marketing Director said “We’ve seen many potential buyers put their moving plans on hold because of rising interest rates. It is extremely pleasing to work in partnership with Own New and offer Rate Reducer to our customers – giving them access to highly competitive mortgage deals which make purchasing one of our homes so much easier.”

Eliot Darcy, founder of Own New, said: “Higher interest rates combined with high inflation and the resulting squeeze on household budgets have made it more difficult for people to purchase their next home. With the support of our house builder partners like Newett Homes, the Rate Reducer scheme is making it possible for buyers to purchase the home of their dreams, while keeping monthly mortgage repayments to a level they can afford.”

An Own New Rate Reducer mortgage allows buyers to purchase a new build home with a lower interest rate mortgage. It’s a regular mortgage, just with lower monthly payments for the initial period.

Own New works behind the scenes with house builders and lenders, to reduce the overall cost involved with mortgage loans on new build properties. The reduction is funded by house builders’ contributions towards the cost of the mortgage and enables the lender to offer borrowers more competitive interest rates during the initial period of their mortgage.