Own New Rate Reducer calculator
We don't invent Own New's incentive-to-rate conversion — that varies by builder and lender, and isn't a formula you can verify in advance. Bring both rates from your broker or builder illustration, and we'll run the comparison nobody shows: the same builder pot used as a deposit contribution vs. used to buy your rate down.
This is an information tool, not advice: it doesn't give a recommendation, a decision in principle, or a guarantee any lender will lend to you.
Worked example: £10,000 builder pot, 2-year initial period
£320,000 price, £16,000 buyer deposit, £10,000 builder incentive pot, 5.5% standard rate vs. 4.5% Rate Reducer rate, 2-year initial period, 25-year term.
As a deposit contribution, the pot shrinks the loan to £294,000 (91.9% LTV) at the standard 5.5% rate — £1,805/month.
As a rate buy-down, the loan stays at £304,000 (95% LTV) but the rate drops to 4.5% for the initial period — £1,690/month.
Over the 2-year initial period, the rate-reducer route is £2,760 cheaper in total than using the same pot as a deposit contribution.
Using the pot as deposit takes you from 95% to 91.9% LTV — that band change alone can unlock cheaper standard rates; ask for a quote at both LTVs.
Change the inputs below to model your own numbers.
Same numbers, 5-year initial period
Identical price, deposit and pot, but the Rate Reducer discount runs for 5 years instead of 2.
Stretching the discounted rate over 5 years instead of 2 changes the total saving to £6,900 in favour of the rate-reducer route over the initial period — a longer discounted period compounds the monthly saving of £115a month for longer, so which route wins can flip depending on how many years the builder's scheme actually discounts.
Change the inputs below to model your own numbers.
Between £50,000 and £5,000,000.
The £ incentive figure from the builder or broker illustration.
From your broker/lender illustration — the rate if you used the pot as deposit.
From the Rate Reducer illustration — the rate if the pot buys the rate down instead.