What is the Own New Mortgage?

The Own New Mortgage is an innovative scheme that allows you to buy a New Build property with an incentive that provides an initial discount to your mortgage rate.

How does the Own New Mortgage work?

Own New creates cheaper initial mortgages. It is a controlled way to apply a home builder incentive. The developer passes the incentive to Own New who uses it with the lender to enable a cheaper mortgage for the customer.

The borrower gets a standard mortgage but with a lower interest rate.

What are the benefits or advantages of Own New?

The incentive is paid at the start of the mortgage. This results in a lower interest rate for the initial term. This results in

• Lower monthly repayments
• You will pay off more capital during the initial fixed term

Do I need anything from the home builder?

Yes. They will provide a Letter of Acknowledgment. This confirms their authorisation and intention to pay the incentive on completion. You cannot obtain a mortgage offer without this.

What is Own New Cashback and when does it apply?

Sometimes the lender doesn’t need the full value of the incentive in order to pass the rate reduction to the customer.

In this case Own New passes the lender only what it needs and any remaining balance is passed back to the customer. This is paid AFTER COMPLETION. 

This calculation is done automatically on every mortgage and included on your illustration. You will therefore be aware what if any Own New cashback you’re entitled to.

Who is eligible for the Own New scheme?

Anyone buying a New Build property from a participating developer. The scheme is available to both first time buyers AND home movers.

Is this the only New Build Incentive scheme?

In short no. There is also a cash incentive scheme and a funded deposit scheme. It is always best to consider which option is most appropriate and discuss with an advisor.