What Buying Schemes Are Available for New-Build Homes?

Buying a new home is an exciting step in life. But it can also feel overwhelming, especially if you are a first-time buyer. The good news is that there are many buying schemes designed to make purchasing a new-build home easier and more affordable. These schemes can help you save thousands of pounds, reduce your monthly payments, or even make it possible to buy a house when you didn’t think you could.

In this article, we will explain the most popular new-build buying schemes in the UK. We will cover Rate Reducer, Shared Ownership, New Build Boost, First Homes, Help to Build, Deposit Unlock, Lifetime ISA, and developer incentives. By the end, you will know which options could work for you and how to get started.

Own New – Rate Reducer

Own New – Rate Reducer is a special scheme that offers lower mortgage rates to people buying a new-build home. In some cases, the mortgage rate could even go below 1%.

This scheme is available to anyone buying a new-build home, whether you are a first-time buyer or already own a property.

How Rate Reducer Works

Rate Reducer uses housebuilders’ budget for incentives to reduce your monthly mortgage payments. For example, if a housebuilder offers a 5% discount on their property, Rate Reducer uses this money to lower your mortgage interest.

Here’s an example:

• You take a £350,000 mortgage over 40 years with 60% loan-to-value (LTV).
• The housebuilder provides a 5% incentive.
• Your mortgage rate can drop from 4.79% to 0.99% for 2 years.
• Monthly payments could go from £1,639 to £883. That’s a saving of £756 per month!

Who Can Use Rate Reducer?

• First-time buyers
• Existing homeowners
• Anyone buying a new-build home from participating builders

Currently, over 200 housebuilders and 6 mortgage lenders like Halifax and Virgin Money participate in the scheme.

Shared Ownership

For many first-time buyers, saving enough money to buy a whole property is difficult. That’s where Shared Ownership comes in.

With Shared Ownership, you buy only a share of the home—usually between 25% and 75%—and pay a mortgage on that share. You then pay a reduced rent on the rest of the property.

How Shared Ownership Works

• You put down a deposit for the share you are buying, which is much smaller than a deposit for the full property.
• Over time, you can buy more shares until you fully own the home.
• The remaining share is usually owned by a housing association, private developer, or local council.

For example, if a house costs £200,000 and you buy a 50% share:

• You pay a mortgage for £100,000
• Pay rent on the remaining £100,000 share

Shared Ownership is a great option if you want to get on the property ladder sooner without needing a huge deposit.

New Build Boost

New Build Boost is one of the newest schemes, launched in 2025. It helps increase your borrowing power by providing an interest-free equity loan worth 15% of the property.

How It Works

• You only need a 5% deposit.
• The equity loan boosts your mortgage so lenders can offer better rates.
• The loan is interest-free for the entire mortgage term for the first 5 years. After that, the repayment adjusts according to market value, but it is capped at twice the original loan.

Who Can Use It?

• First-time buyers
• Homeowners buying a new-build from Persimmon or Charles Church

Benefits:

• Save money on your deposit
• Access better mortgage rates
• Interest-free loan for 5 years

This makes it easier to afford a brand-new home without having a huge amount of savings upfront.

First Homes

The First Homes scheme started in 2021 to help local first-time buyers and key workers get new-build homes at discounted prices, usually 30%-50% off.

How It Works

• The discount stays with the property forever, helping future buyers on a low income.
• The government plans to add 10,000 new homes to the scheme each year.

Eligibility Criteria

To use the First Homes scheme:

1. You must be a first-time buyer.
2. Your income must be less than £80,000 (£90,000 in London).
3. The property must cost no more than £250,000 (£420,000 in London).
4. You must live or work in the local area or have a connection to it.
5. Key workers (teachers, nurses, police, etc.) are prioritized.

This scheme is perfect if you want a home at a lower price and plan to live in it for the long term.

Help to Build

If you want to build your own new home, the government provides support through the Help to Build Equity Loan Scheme.

How It Works

• You put down a 5% deposit.
• The government provides an equity loan up to 20% (or 40% in London).
• The project’s total cost must not exceed £600,000.
• The loan is interest-free for the first 5 years.

This scheme is ideal if you want to design and build your home from scratch rather than buying a ready-made property.

Deposit Unlock

Deposit Unlock is a scheme that helps you buy a new-build home with just a 5% deposit.

How It Works

• The developer puts part of the purchase price into an insurance policy for your mortgage provider.
• This reduces the risk for lenders, letting them give you a lower interest rate.
• The scheme is available for all buyers, not just first-time buyers.

Eligibility

• Available for new-build houses and two-bedroom apartments
• Not available for studios or one-bedroom flats
• Only for properties from participating developers

Deposit Unlock is useful if you don’t have a large deposit but want to buy a new-build home quickly.

Lifetime ISA

A Lifetime ISA is a savings account designed to help people buy their first home.

How It Works

• You can save up to £4,000 per year.
• The government adds 25% extra to your savings (up to £1,000 per year).
• Your savings earn tax-free interest.

You can use a Lifetime ISA to save for your first home or for retirement. It is open to people aged 18–39, and you can continue saving in it until age 50.

Benefits:

• Extra government contribution (free money!)
• Compound interest grows your savings faster
• Helps first-time buyers save for a deposit

Developer Incentives

Many housebuilders also offer extra incentives to encourage buyers to purchase a new-build home.

Some common incentives include:

• Paying your stamp duty
• Covering legal fees
• Paying rent for a Shared Ownership property for a period of time
• Free soft furnishings, like curtains or blinds
• Free upgrades on flooring or appliances
• Free travel cards for families

Each developer may offer different incentives, so it’s always worth asking when viewing new properties.

Tips for Using Buying Schemes

1. Check eligibility carefully: Each scheme has rules about income, age, or property type.
2. Compare mortgage rates: Some schemes may reduce your interest rate, so shop around for the best deal.
3. Consider your long-term plans: Shared Ownership or First Homes may limit how you sell your property in the future.
4. Talk to a financial advisor: If you are unsure, an advisor can help you choose the best scheme.
5. Look for developer deals: Combine schemes with developer incentives for maximum savings.

Conclusion

Buying a new-build home can seem expensive at first. But with schemes like Rate Reducer, Shared Ownership, New Build Boost, First Homes, Help to Build, Deposit Unlock, Lifetime ISA, and developer incentives, it is much more affordable.

Each scheme has its benefits, and some are better for first-time buyers while others suit existing homeowners or self-builders. By exploring your options carefully and understanding how each scheme works, you could save thousands of pounds and secure your dream home faster than you thought.

Remember: the key is planning ahead, checking eligibility, and taking advantage of the schemes and incentives available to you. With the right approach, owning a brand-new home is possible—even if you thought it was out of reach.

Buying your first home is a big step, but these schemes are here to make it easier, cheaper, and more realistic. Start researching today and see which scheme works best for you.