Own New will make 95 per cent mortgages available to new homes buyers
A scheme which will make competitive 95 per cent mortgages available to more people buying new homes has been unveiled today.
With more than 30 members already, from national PLCs to smaller regional builders, more housebuilders are being invited to join Own New, which will increase availability to high-LTV mortgages for new homes across the UK.
Own New has a range of ways to reduce a lender’s risk, making it easier for lenders to offer mortgages for new homes with low deposits.
There are no regional price caps and it is free to join. The housebuilder pays a small fee after completion to support the scheme.
Own New was created by Market Mortgage, a company founded by Eliot Darcy with the intention of enabling mortgages for people who want to buy a new home but can’t stretch their deposit any further. Market Mortgage has the backing of Capita as a major shareholder.
Own New works with developers, mortgage lenders and investment banks to reduce risk for the lender. This creates better mortgages for new builds which are available to a broader range of people.
Customers buying from participating housebuilders can simply apply for a normal 95 per cent mortgage through the broker and lender as usual. There is no cost to the homebuyer for using Own New.
Barratt Developments was one of the first companies to join the Own New scheme.
Eliot founded Market Mortgage with the intention of tackling inequality in the housing market. His aim was to make home ownership attainable to people who don’t have a ‘bank of mum and dad’ to help fund their purchase.
Housebuilders can sign up to Own New by completing a services agreement. Training can be arranged for sales teams and marketing collateral is provided to help housebuilders explain the scheme to customers.