Prospective buyers looking for new build homes in Darlington Building Society’s operating area can apply for 95 per cent LTV mortgages from today.
Own New aims to fill the gap left by the closure of Help to Buy, which it says will help those with a small deposit.
Own New aims to help lenders behind the scenes “reduce the risks” linked to high LTV mortgages, so lenders can offer mortgages with “more attractive rates to a wider range of buyers”.
More lenders will be announced with Own New in the coming months.
Own New is funded by housebuilders, who pay a small fee on completion of sale with no cost to the homebuyer. More than 60 housebuilders have signed up to Own New as it plans to expand nationwide.
Homebuyers apply for mortgage through Darlington Building Societ and then own 100 per cent of their home.
Eliot Darcy (pictured), founder of Own New, said: “I am delighted that Own New is now available in the mortgage market to help all kinds of homebuyers.
“I firmly believe that home ownership should be based on prospects, not parents. I made a promise to myself that I would try to fix this issue in the market and the launch of our first mortgage product is a momentous step towards achieving that aim.”
He added: “Lenders can now offer better mortgages to people who don’t have a ‘bank of mum and dad’, as well as people who want to move home and need support with the next step.”
Andrew Craddock, Darlington Building Society’s chief executive, said: “Darlington Building Society has partnered with Own New to enable local people to buy their new home, whilst supporting house builders across the North East and North Yorkshire.
“The launch of this mortgage is significant for homebuyers who would previously have benefited from the government’s Help to Buy scheme. Through this innovative approach, people from across our local area can now take their first or second step on the property ladder.”
