The Own New Rate Reducer scheme is funded through a subsidy paid for by house builders, which sees mortgage rates significantly reduced via partnering lenders on qualifying new homes for the initial borrowing period.

Barratt Developments was the first housebuilder to join the scheme, working with Own New to establish it, and 250 others are expected to register.

Lenders Virgin Money, Furness Building Society, Darlington Building Society and Halifax are confirmed as signed up to provide the mortgages, with others due to follow.

The Mortgage Mum chief executive and founder Sarah Tucker says: “We are so excited to be partnering with Own New on this innovative product. The high interest rates stop a lot of our clients moving, and this could be the help they need to take the leap. We have many clients who are interested in buying a new build property, and as brokers, we really miss being able to offer the Help to Buy Scheme. We see the Own New products bringing a huge boost to the new build sector, and we are determined to help spread the word.”

Own New founder Eliot Darcy says: “Higher interest rates combined with high inflation and the resulting squeeze on household budgets have made it more difficult for people to get on the property ladder, or to move up it. With the support of the house builders and our finance partners like 123 Mortgages, the Rate Reducer product is making it possible for buyers to purchase the home of their dreams, while keeping monthly mortgage repayments to a level they are willing to pay.”