Own New and Darlington Building Society have launched their 95 per cent mortgage product for new builds to homebuyers across the society’s operating area.
People looking to purchase a new build home in Darlington Building Society’s operating area will be able to apply for the mortgages from today.
Own New will help to fill the gap left by the closure of Help to Buy, enabling people to buy their first or next home if they have a low deposit.
Eliot Darcy, founder of Own New, set out to create a fairer system of mortgage lending after being frustrated when he bought his first home in his 20s. Despite having a stable income, he struggled to secure a mortgage, while friends with wealthy parents enjoyed a much more straightforward route to buying.
Eliot 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.
“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.”
Own New works with lenders behind the scenes to reduce the risks linked with high loan-to-value mortgages. This means the lender can offer mortgages with more attractive rates to a wider range of buyers.
Darlington Building Society is the first to launch a product with Own New and other lenders will follow in the coming weeks.
Andrew Craddock, Darlington Building Society 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.”
More than 60 homebuilders across the country have signed up to offer Own New as it expands nationwide. Those already live across Darlington Building Society’s operating area include Barratt Homes, Persimmon, Bellway, Homes by Esh, Story Homes, Port Homes, Amethyst, Dere Street and David Wilson Homes.
Own New is funded by housebuilders, who pay a small fee on completion of the sale. There is no cost to the homebuyer. They simply apply for a standard mortgage in the usual way through Darlington Building Society and own 100 per cent of their home.