A scheme has just been launched for new build homes, and it could be a game changer. This is not Shared Ownership, and it’s not Help to Buy. In today's article, our experts at Foxtons New Homes and Alexander Hall discuss the ‘Own New rate reducer,’ explore the best Own New homes on the market and share everything you need to know about the Own New mortgage.
“Rates are currently starting from 0.83%, which is incredible! I never thought I’d see rates below 2% again in my lifetime and we’ve just seen a sub 1% 2-year fixed rate, launched to give buyers lower monthly payments. My honest opinion is that this is the best scheme in place right now to get buyers onto the property ladder.”
~ Shafeen Daya
Team Leader and New Homes specialist at Alexander Hall
Jump to:
What is Own New
Key Details
Own New eligible homes for sale
Own New v Help to Buy v Shared Ownership
How to get an Own New mortgage
What is the Own New Rate Reducer?
Why buy new build? Read: New homes are made for modern living
With this mortgage scheme, the developer pays an incentive of up to 5% to the lender to reduce the rate. This reduces your outgoing monthly payments significantly.
Importantly, with lower monthly payments, it's much easier for you to pass affordability checks. So, with an Own New mortgage, you can get the best suited new-build home and comfortably afford your repayments on it.
Key details on Own New
Own New is a mortgage built to reach all potential homebuyers, and give them a very strong reason to consider new build:
✓ 100% Ownership: Unlike Shared Ownership, you own your entire home from day one.
✓ Designed for you: Open to both first-time buyers and home movers, employed and self-employed.
✓ Competitive rates: Enjoy interest rates as low as 0.83%, a stark contrast to the current market average of 4-6%.
✓ Affordability: Lower monthly payments make it easier to pass mortgage affordability checks and secure your dream home.
Not Help to Buy, Not Shared Ownership
There are some important differences between this scheme, Help to Buy and Shared Ownership. Own New is more suited to today’s mortgage environment, so it will help a lot of Londoners either get on the property ladder or take their next step:
• Own New helps you pass the affordability test: The Help to Buy equity loan wasn’t built for the higher interest rate environment we’re in now. Today’s buyers would struggle to pass its affordability tests, so a Help to Buy alternative is necessary. Own New levels the playing field with lower rates.
• Own New is not just for your first home: Only first-time buyers were eligible for Help to Buy, and they could only sell their home on to other first-time buyers. Own New is both a first-time buyer mortgage and home mover mortgage. It encourages more Londoners to make their move.
• Own New makes your monthly outgoings more manageable: As a Shared Ownership alternative, Own New offers the advantage of full 100% ownership without the monthly burden of rent payments.
Skip the search: find your Own New home here
We currently have 52 different developments eligible for an Own New mortgage.
West End Gate
Studio, 1 bed and 3 bed apartments | Paddington Green in the heart of London's West End | Central London
✓ 24-hour concierge service and CCTV
✓ Residents Lounge and private dining facility
✓ State of the art swimming pool and spa
Riverscape
1, 2 and 3 bed apartments | Riverfront views in Royal Wharf | East London
✓ Open-plan living areas with bespoke framed timber cabinetry, fluted glass and brushed brass
✓ Residents' sky lounge located on the 16th floor, available for private hire
✓ State-of-the-art fitness suite and over 40 fitness classes a week to choose from
✓ On-site Royal Wharf Primary School
Ridgeway Views
1 and 2 bed homes | Mill Hill overlooking Totteridge Valley | North London
✓ All homes come with private outdoor space
✓ Fully-equipped on-site residents' gym
✓ Just a short walk from the Tube
✓ Pet friendly development
Goodluck Hope
Studio, 1, 2 and 3 bed apartments | Desirable riverside location in E14 | East London
✓ Superb community with a host of amenities on the doorstep
✓ Heated swimming pool and spa
✓ Every unit offers outdoor space
Hendon Waterside
1, 2 and 3 bed homes | Hendon, next to Welsh Harp Reservoir | North West London
✓ Contemporary German kitchens with integrated appliances
✓ Underfloor heating throughout
✓ Landscaped communal gardens
✓ 12-hour concierge service
Hayes Village
1, 2 and 3 bed homes | Hayes | West London
✓ Set on the former Nestle factory site
✓ Most homes include a private outdoor space
✓ Residents' Gym and planned retail space
✓ Individually designed kitchen with integrated appliances
Oval Village
Manhattan, 1, 2 and 3 bed apartments | Between Vauxhall, Oval and Kennington stations | South London
✓ 24-hour concierge
✓ Gym, swimming pool and vitality pool
✓ Residents' garden and private garden for each apartment
✓ Siemens integrated appliances
Woodberry Down
1, 2 and 3 bed apartments | Moments from Finsbury Park, Manor House and Stoke Newington | West London
✓ Gym, spa, swimming pool and jacuzzi
✓ 24-hour concierge and CCTV security
✓ Amazing views across the reservoirs
✓ Waterside restaurants, cafes and leisure space
Bermondsey Heights
1 and 2 bed apartments | Bermondsey, 5-minute train to London Bridge | East London
✓ Balcony or winter garden, plus access to a residents' roof terrace
✓ Contemporary bathrooms, with beautifully tiled walls and floors
✓ German-designed kitchens with modern, integrated appliances
✓ Well served for Good and Outstanding Ofsted-rated schools and colleges
Springfield Place
1 and 2 bed apartments | Residential village connecting Tooting Bec and Earlsfield | South West London
✓ Well connected to 3 stations offering both tube and rail access
✓ Development includes the creation of a new 32 acre park, public square and primary school
✓ New range of Restaurants, Coffee shops and Gym
Let us help you find your best-suited Own New home. Get in touch with Foxtons New Homes.
How to get the Own New mortgage
Lenders like Halifax and Virgin Money have begun to partner with Own New to offer homeowners exceptional mortgage rates. By taking advantage of the developer incentive, these lenders can provide significantly reduced interest rates, making homeownership more attainable.
Not all advisers are qualified to give advice on the Own New Scheme, but Alexander Hall mortgage advisers are qualified and ready to help. Get in touch with Alexander Hall.
