OWN NEW MORTGAGES
Buying a brand-new home is exciting, but high mortgage rates can weigh it down. The Own New Rate Reducer scheme makes new-build mortgages more affordable by using developer incentives to reduce your mortgage rate for the initial term. With guidance from Watts Mortgage & Wealth Management, this could be your path to lower monthly repayments and full 100% ownership from day one.
Own new is a private initiative, not government-backed, that partners with new-build developers and approved lenders to cut mortgage interest rates for buyers. Through this approach, the developer applies a contribution (typically 3–5% of the property price) to your lender. The lender then passes this benefit on by offering you a reduced fixed-rate mortgage for 2–5 years.
- Developer contribution: Developers invest 3–5% of the purchase price to lower your lender rate.
- Full ownership from day one: No shared equity, own 100% of your home immediately.
- Fixed-rate periods: Choose a 2- or 5-year fixed-rate term.
- Who can apply: Open to first-time buyers, home movers, and those who’ve previously owned property, so long as the home is a new build and the lender and builder are participants.
- Lenders and builders involved: Lenders include Virgin Money, Halifax, Kensington, Perenna, Furness, Darlington, and more. Participating builders include Barratt, Bellway, Taylor Wimpey, Persimmon, Berkeley Homes, Davidsons, and many others.
- Whole-of-market expertise: We compare all available lenders to find the best rates for you.
- Approved by Own New Rate Reducer: We’re an authorised broker panel and have experience navigating the scheme.
- End-to-end support: From builder connections and mortgage application to completion and beyond, including remortgage planning before your initial deal ends.
- Check developer participation before reserving: Only homes from approved builders are eligible.
- Be aware of long-term costs: After 2–5 years, your rate reverts to the Standard Variable Rate (SVR) unless you remortgage, plan ahead.
- Deposit matters: Lower rates often require higher deposits (e.g., 40% for headline rates).
- Negotiate property price separately: Developer incentive goes to the lender, you could negotiate the purchase price instead.
- Watch for new build premiums: New builds can depreciate initially, consider resale potential.
At Watts Mortgage & Wealth Management, we’re ready to connect you with registered builders, calculate your savings, and guide you from application to post-fix planning.
Contact us today for a confidential chat about whether own new is right for you, and let’s make lower-rate home ownership a reality. Call 01270 620555 or fill in the enquiry form. We’d be delighted to assist you.
MAKE AN ENQUIRY
If you’re looking for mortgage advice, contact Watts IFA today. Our expert team can help you secure the best mortgage based on your contracting status and financial situation.
Shannan Cliffe
Senior Mortgage Adviser
“In 2025, I took an exam which now means that Watts Mortgage & Wealth Management Ltd are an “Own New Approved Broker” which as an independent firm is important to us. We are always striving to have access to all available products to enable us to advise our clients on the best options available for their circumstances and keeping up with new incentives / schemes put us at the forefront of the mortgage market.”
With our extensive experience and access to a vast lender network, Watts Mortgage & Wealth Management Ltd is the ideal partner for those seeking a tailored mortgage solution. Contact us today, and let our dedicated advisers guide you through the process.
AWARDS AND ACHIEVEMENTS
FAQs for Own New mortgages
Rates can be dramatically lower, for instance, Virgin Money has offered 2-year fixes as low as 0.59%, much cheaper than traditional 4%+ rates.
You can buy with as little as a 5% deposit via the “Deposit Drop” scheme, though better rates are often tied to larger deposits (e.g., 40%).
Your rate will switch to the lender’s SVR or you can remortgage. At Watts, we’ll contact you ahead of time to assist with a competitive next deal.
Anyone buying a new-build home through an Own New-registered developer, whether you’re a first-time buyer, mover, or previous homeowner.
No, it’s not a discount or cashback to you. The builder’s contribution benefits the lender to lower your interest rate.
Lenders include Halifax, Virgin Money, Kensington, Furness, Perenna, Darlington, and others. Builders include Barratt, Bellway, Taylor Wimpey, Persimmon, Berkeley, Davidsons, etc.
Consider limited choices (new-build only, certain plots), potential post-fix rate increases, and the impact of developer incentives on price negotiations.
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Our friendly, knowledgeable and experienced team are here to help find the right mortgage and life insurance for you. We have helped thousands of clients, over 30 years buy their dream home and ensure their family is protected.
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I just wanted to say a massive thank you for your assistance in my purchase. I would like to place on record my appreciation of the professionalism and tenacity of Emma. She has kept me fully updated in terms of progress and answered all of my questions in a timely manner. Great service and hope we can do business again in the future.
A. Henshall
