Own New: What is it and how does it work?

How can Own New help me buy a home?

What is Own New?

Own New is an innovative home-buying scheme designed to make purchasing a new-build property more affordable and accessible for a wide range of buyers. Own New’s Rate Reducer is a unique feature that reduces the interest rate on your mortgage payments during the initial term, allowing for lower monthly payments and helping you pay off more of your capital.

Available to first time buyers and home movers, Own New allows you to purchase 100% of a property while benefitting from lower mortgage costs upfront.

How does Own New work?

Own New simplifies home-buying by connecting buyers, approved mortgage brokers, and lenders with participating homebuilders. Here’s how the process works:

1. Find an eligible new-build property: Begin by exploring developments that offer the Own New scheme.
2. Work with an approved broker: Once you’ve selected a property, a qualified Own New-approved mortgage broker will help you determine if the Rate Reducer mortgage suits your needs.
3. Secure your Rate Reducer mortgage: Your broker will guide you through the process of arranging a reduced-rate mortgage with one of the participating lenders.
4. Move into your new home: With the Rate Reducer in place, you will benefit from more manageable monthly payments as you move into your brand-new home.

What are the key features of the Own New Reducer Rate?

• Affordable entry point: Deposit requirements start from as little as 5%, making it accessible for buyers with varying budgets.
• Reduced monthly payments: The Rate Reducer lowers the interest rate during the initial term of the mortgage, helping to tackle cost-of-living pressures.
• 100% ownership: Own New allows you to own the entire property outright from the very beginning.
• Flexibility for various buyers: Whether you’re a first time buyer or looking to move up the property ladder, Own New offers a tailored solution to guide you on the path to homeownership

How can I find an Own New home?

Own New properties are available through participating housebuilders across the UK. Many developments include properties eligible for the Rate Reducer, ensuring you can find affordable options in sought-after locations.

Own New properties are coming soon to the Share to Buy property portal. In the meantime, you can learn more about the scheme, including detailed eligibility requirements and a breakdown of the associated costs and affordability.