Own New is an initiative which has been developed by Market Mortgage. Market Mortgage launched in 2017 and is backed by professional services firm Capita.
The scheme helps to reduce the risk of high LTV lending by partnering lenders with private investors. It is funded by housebuilders who pay a fee on completion of the sale and is available for new-build flats and houses. There are no regional price caps on a property’s value.
Borrowers apply for a mortgage in the usual way through Darlington Building Society.
The product will launch early next year and be available in the North East and Yorkshire before being rolled out nationally. It will be open to first-time buyers and home movers buying new homes.
People with adverse credit histories and self-employed workers will be considered.
Around 50 housebuilders have partnered with Own New, including Barratt Developments, Countryside and Linden Homes.
Eliot Darcy, founder of Market Mortgage, said the launch came as Help to Buy was ending and this would “plug the gap” without relying on taxpayer funding.
He added: “We are delighted to announce Darlington Building Society as the first lender to join Own New, reflecting its foresight, willingness to innovate and agile structure.
“Darlington’s focus on manual underwriting means each application will be considered by a person rather than an algorithm. This will particularly help people with non-standard circumstances, for example those who are self-employed, have multiple sources of income or who are in the early stages of their career and looking to build a credit rating.”
Andrew Craddock, chief executive of Darlington Building Society, said the mutual had a history of helping people become homeowners and was always looking for creative ways to enable this.
He added: “As costs for all of us continue to increase, raising large deposits is out of reach for many. Our partnership with Own New is an exciting opportunity for us to combine our award-winning mortgage proposition with its innovative solution for borrowers with low deposits, so we can continue to make homeownership accessible.”
