Just launched this year, the Own New Rate Reducer scheme offers competitively priced mortgage products, available for both first-time buyers and home movers.

This new initiative aims to make buying a new build home more affordable by offering lower interest rates and monthly payments, helping you make your move a reality this year. It’s the perfect solution for those wondering how to lower mortgage payments whilst still keen to buy a new home this year.  

This blog outlines what Own New is, how it works and the benefits of this new scheme, so you have all the information to decide if this works for you.

What is Own New?

Own New works with more than 60 homebuilders, including Cala, with big lenders, such as Virgin Money and Halifax, also on board.

Cala has partnered with Own New to offer the following mortgage product:

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

The Own New Rate Reducer helps buyers pay off more of the capital value of their mortgage and build up more equity in their home.

Instead of homebuilders offering cashback incentives or discounts, through Own New we can help invest in your mortgage, therefore lowering your interest rate, which is a fantastic benefit to new homeowners.


How does it work?

If you think Own New is the right service for you, the process is simple.

Firstly, this is a traditional mortgage however it needs to be accessed via Own New. Once verified, arrange your mortgage with one of our approved mortgage brokers. They’ll help you determine if Own New’s Rate Reducer is right for you.

Homebuilders will either contribute 3% or 5% of the purchase price, depending on what has been discussed, which is then sent to your mortgage lender via Own New. This payment offsets against the mortgage interest, so your rate falls in line with the contribution, which results in lower monthly payments for your initial term.

Rates start at 0.99% for a two-year fixed-rate mortgage with a 60% loan to value (LTV). Interest rates will be higher if you have a higher LTV, which is the percentage of borrowing you have against your home. So, for example, with a 60% LTV mortgage, you’ll own 40% of your home.

Please note that Independent financial advice must be sought from a regulated mortgage broker to access this scheme.

What are the benefits of Own New?

There are many benefits to using the Rate Reducer initiative for both first-time buyers and those who have previously owned a property. We’ve listed the main advantages for homebuyers below:

  1. Reduced mortgage rate making new build homes more affordable
  2. Lower monthly payments guaranteed
  3. A streamlined buying process with the added advantage of cheaper rates
  4. Buying a new build home has many of its own benefits…


Mobeen Akram, New Homes Director at Mortgage Advice Bureau, said: “Innovation is essential to stimulate the mortgage market and keep building momentum, and the more options there are available to buyers, the better. Own New is a prime example of the ‘no one-size-fits-all’ solution to homebuying, helping a wider range of customers get on the property ladder.”


Why buy new with Cala?

From energy saving to moving chain-free, there are plenty of benefits to buying a new build home. In comparison to buying an older property, a new build home features brand-new kitchens and bathrooms newly installed, often chosen by buyers if plots are in the early stage of the build process.

Not to mention, there is lower maintenance required than older homes, and with every Cala home, there is a 10-year NHBC Buildmark warranty.

Many prospective buyers have energy efficiency at the top of their agenda, and for good reason. New build homes are built to be much more energy efficient, with features such as efficient boilers, quality insulation, double-glazed windows and water-saving systems.

A new build home also gives you a completely blank canvas, allowing you to put your own stamp on it depending on your style and taste, and giving you flexibility to suit your family’s needs and lifestyle.



How do I begin the process with Cala?

The Own New Rate Reducer is available throughout the UK on selected Cala developments. For more information on the Own New scheme, visit ownnew.co.uk or view Cala’s Own New page for more information on the process.  

With a range of new build homes and apartments across England and Scotland, Cala has the expertise and incentives to suit everyone to help make your move happen. Visit our Helping you Move page for more information.

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