BEHIND THE NUMBERS
How this calculation works
Worked example
For a £320,000 home with a £20,000 deposit over 25 years, illustrative rates of 5% and 4% produce about £1,753.77 and £1,583.51 monthly payments. With no fees, the 24-month cash-payment saving is about £4,086.23. Replace these example rates with real quotes.
Example result: £4,086.23
Payment saving and interest saving differ
A lower rate also changes how quickly principal is repaid. Comparing only monthly payments misses the different balance left at the end of the initial period, so both balances and interest costs are shown.
A contribution is not an interest-rate formula
Own New works through participating builders, lenders and brokers. The available product determines how a contribution is used. This calculator accepts quoted rates instead of deriving an unverified rate from the incentive.
Assumptions and rounding
- Monthly repayment mortgages with fees paid upfront and no overpayments. Rates remain fixed throughout the chosen comparison period.
- The illustrative 5% and 4% rates are not advertised offers. Replace both with actual quotes. The price-discount scenario assumes a negotiated alternative and unchanged standard rate.
Questions about this calculator
Can I calculate my Own New rate from a 5% contribution?
No. Obtain a lender or approved broker quote. The contribution does not map to one universal rate.
Is the discounted-price alternative actually available?
Only if the builder and lender agree. It is an explicitly hypothetical comparison using the same cash deposit and standard rate.