Under the Own New model, builder incentives are used to reduce mortgage interest costs.
Own New has partnered with Chorley Building Society to expand access to lower-rate mortgages for buyers purchasing new-build homes.
The partnership allows eligible homebuyers to use the Own New scheme alongside Chorley Building Society mortgage products, with the aim of reducing monthly mortgage repayments during the early years of homeownership.
Under the Own New model, builder incentives are used to reduce mortgage interest costs.
Where a builder offers a 5% incentive, the full value is used to reduce the buyer’s mortgage interest payments.
If the entire incentive is not required for the rate reduction, the remaining value is returned to the buyer as cashback.
Buyers continue to own 100% of their property from the outset and do not pay fees to access the scheme.
The lender said the partnership would be particularly relevant for first-time buyers and home movers seeking lower monthly payments during their initial fixed-rate period.
Chorley Building Society said its approach to manual underwriting and experience in new build lending made it a suitable partner for the scheme.
Eliot Darcy, chief executive of Own New, said: “Partnering with Chorley Building Society is a game-changer for the Own New panel, particularly for brokers dealing with more complex cases.
“Their willingness to combine our Rate Reducer product with criteria for light adverse customers, alongside Joint Borrower Sole Proprietor applications allowing up to four incomes, gives brokers an incredibly powerful tool.
“It means we can unlock significantly lower monthly payments for buyers who might otherwise be forced onto much higher rates with traditional specialist lenders.”
Liz Pearson, operations director at Chorley Building Society, said: “We are pleased to launch our Own New mortgage range, which serves the needs of both existing homeowners and first-time buyers.
“We listen to feedback from our broker partners and we know that they are looking to help their clients with innovative options that support affordability.
“At Chorley Building Society, we have a flexible approach to lending and we can uniquely provide Own New’s proposition along with our Joint Borrower Sole Proprietor criteria.
“Chorley Building Society was formed more than 165 years ago to help people own their own homes, and we are still doing that today with innovative new products, such as the Own New mortgage.”
Own New said the partnership provides brokers with an additional lender option for clients purchasing new-build homes and looking to prioritise affordability in the early years of their mortgage.
The company added that builders could use the scheme to broaden the pool of potential buyers without increasing headline property prices or relying solely on traditional deposit contribution incentives.
Further details on product availability and criteria will be made available through approved brokers.