Doulton Bridging Finance
New Build Mortgages — Own New Rate Reducer

Own New Rate Reducer 2026 — Mortgage Rates From 1.87% on New Build Properties

Own New Rate Reducer 2026 — mortgage rates from 1.87% on new build properties. DBF works with Own New participating developments. Compare Rate Reducer vs standard mortgage. Doulton.

Own New Rate Reducer is a developer-funded scheme that dramatically reduces your mortgage interest rate during the initial fixed period. The developer contributes 3% or 5% of the purchase price directly to the mortgage lender — which uses that contribution to subsidise your rate. The result: a 2-year fix at 1.87% (Furness Building Society, 80% LTV, summer 2026) compared with the standard best buy of 4.37% (Halifax, 60% LTV, June 2026). DBF works with Own New participating developments. We access Rate Reducer on your behalf on any participating development — no referral to another broker, no additional step.

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1.87%
Own New Rate Reducer example rate (Furness BS, 80% LTV, 5% contribution, summer 2026)
4.37%
Standard best buy 2-year fix without Rate Reducer (Halifax, 60% LTV, June 2026)
160+
Participating housebuilders on the Own New scheme
Whole of market
DBF accesses the full UK mortgage lender panel
Current rates · Updated August 2026Residential Mortgage Rates 2026UK residential mortgage rates in 2026 range from 4.33% for the best 2-year fix (Danske Bank, 60% LTV, August 2026) to above 6% for high-LTV or complex income cases.
View the rate guide
NEW BUILD MORTGAGES — OWN NEW RATE REDUCER

How Rate Reducer works — the mechanics

Step 1: The developer agrees to contribute 3% or 5% of the purchase price via Own New. Step 2: DBF (as approved Own New broker) submits your mortgage application to a participating lender alongside the Own New Rate Reducer instruction. Step 3: At mortgage offer, the lender applies the Rate Reducer discount to your interest rate for the initial fixed period. Step 4: At the end of the initial period (typically 2 or 5 years), the rate reverts to the lender's standard rate. Step 5: DBF remortgages you at that point to capture the best available deal. The developer contribution is not paid to you — it goes directly to the lender as a rate reduction instrument. You never touch the money. This is important for lender disclosure: the Rate Reducer contribution is disclosed on the mortgage application as a developer incentive.

Participating lenders (August 2026)

Halifax, Virgin Money, Gen H, Furness Building Society, Perenna, Kensington Mortgages, Leek Building Society, Darlington Building Society. The lender panel is growing. DBF maintains current panel information and knows which lenders are accepting Rate Reducer applications for which developments. Not all lenders are available on all developments.

What happens at the end of the initial period

Rate Reducer applies only during the initial fixed period (typically 2 or 5 years). After this, your mortgage reverts to the lender's standard variable rate — which will be significantly higher. This is why DBF schedules a remortgage 3–4 months before the end of the Rate Reducer period. The expectation is not that you stay on the standard rate — the expectation is that DBF remortgages you to the best available deal at that time. The Rate Reducer period is the incentive; the remortgage is the plan.

Rate Reducer vs standard mortgage — when each wins

Rate Reducer wins when: (1) you are on a participating development with 5% contribution; (2) you plan to remortgage at the end of the initial period; (3) the total cost over 5 years (Rate Reducer period + projected remortgage rate) is lower than the standard 5-year fix available today. Standard mortgage wins when: (1) the development offers a 3% contribution (smaller rate reduction); (2) a mainstream lender has a very competitive 5-year fix today that beats the Rate Reducer total cost; (3) you need certainty of rate for 5 years and do not want the reversion risk. DBF calculates both scenarios for every Rate Reducer enquiry.

Cannot combine with other schemes

Rate Reducer cannot be combined with the Mortgage Guarantee Scheme, Shared Ownership, First Homes, Part Exchange, or Movemaker. Own New Flex (the sibling product) allows 3% contribution with some cashback — more flexible on combination with other builder incentives. DBF advises on which scheme gives better total value for your specific purchase.

Own New Rate Reducer — Example Rates vs Standard Market August 2026

ScenarioRate Reducer rateStandard equivalentMonthly saving (£250k mortgage)
5% contribution, 80% LTV, 2-year fix (Furness BS)1.87%4.37% (Halifax, 60% LTV best buy)£366/month
3% contribution, 80% LTV, 2-year fix~2.70% (estimated)4.37%~£222/month
5% contribution, 75% LTV, 2-year fix~2.00% (estimated)4.20% (typical 75% LTV best buy)~£298/month
5% contribution, 85% LTV, 2-year fix~2.20% (estimated)4.70% (typical 85% LTV new build)~£322/month

Worked example

New build house: £320,000. 10% deposit: £32,000. Mortgage: £288,000.

  • Participating development — 5% builder contribution (£16,000) via Own New Rate Reducer.
  • Route A — Own New Rate Reducer (Furness BS, 2-year fix):
  • Rate: 1.87%. Monthly: £1,207. Year 1–2 total interest: £29,013.
  • Route B — Standard 90% LTV new build (Halifax, 2-year fix):
  • Rate: 4.52%. Monthly: £1,578. Year 1–2 total interest: £37,866.
  • Saving in initial period: £8,853 over 24 months.
  • After 2 years: DBF remortgages to best available deal. Rate Reducer advantage crystallised.
  • Note: £16,000 developer contribution is not paid to buyer — it goes to the lender. Buyer's deposit remains £32,000.
The Process

How it works

01

Tell us about your purchase

Share the property details, development, scheme type (Rate Reducer, MGS, shared ownership), and your deposit. We assess your situation same working day.

02

Lender search and scheme check

We identify which lenders accept your income type, development, and property classification — including Rate Reducer and MGS eligibility where relevant.

03

Application and valuation

We manage the full application, coordinate the RICS valuation, and liaise with the developer on build schedule and offer validity.

04

Mortgage offer and completion

Once the offer is issued, we monitor build progress, manage any extensions needed for off-plan delays, and coordinate completion.

FAQs

Frequently asked questions

What is Own New Rate Reducer?

A scheme where the housebuilder contributes 3% or 5% of the purchase price to reduce your mortgage interest rate during the initial fixed period. The contribution goes to the lender, not to you. The result is a significantly lower initial rate — as low as 1.87% in summer 2026 — compared with standard new build mortgage rates.

Can DBF access Own New Rate Reducer?

Yes — DBF works with Own New participating developments. We access Rate Reducer directly on your behalf on any participating development. You do not need to go to another broker for this scheme.

Can I use Rate Reducer on a flat?

Rate Reducer is available on some flat developments with participating builders. However, lender LTV limits for flats (typically 75%–85%) apply within the Rate Reducer framework. EWS1 requirements for flats over 11 metres also apply. DBF confirms Rate Reducer availability for your specific development and property type.

What happens to my rate when Rate Reducer ends?

Your mortgage reverts to the lender's standard variable rate — typically significantly higher than the Rate Reducer rate. DBF schedules a remortgage 3–4 months before the end of the initial period to move you to the best available deal at that point. Rate Reducer is a 2-year or 5-year incentive, not a permanent rate.

Can I combine Rate Reducer with a Lifetime ISA?

Rate Reducer cannot be combined with the Mortgage Guarantee Scheme. There is no prohibition on using LISA savings (accumulated separately) as part of your deposit alongside Rate Reducer — the LISA is a savings vehicle, not a mortgage scheme. DBF confirms combination eligibility for your specific situation.

Is Rate Reducer available on my development?

Contact DBF with the development name and housebuilder. DBF confirms whether the builder is a participating Own New partner and whether the specific lender panel is active for that site. DBF maintains current intelligence on participating developments.

Related finance

Explore related pages

New Build Mortgages Hub

New build mortgages 2026 — specialist whole-of-market broker. Lower LTV, scheme expertise, off-plan offer validity, Own New Rate Reducer.

New Build Mortgage for FTBs

New build mortgage for first-time buyers 2026 — 5% deposit routes, stamp duty relief, Own New Rate Reducer, LISA bonus. Approved Own New broker.

Own New Rate Reducer vs Standard Mortgage

Own New Rate Reducer vs standard new build mortgage — side-by-side cost comparison. 1.87% vs 4.37%. Total cost over 5 years. When Rate Reducer wins.

Own New Rate Reducer Complete Guide

Own New Rate Reducer complete guide 2026 — how it works, which builders, which lenders, rate comparison, when it is worth it. DBF approved broker.

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