"Own New has been developed in close collaboration with lenders, housebuilders and brokers in a way that works best for all parties. I"
Own New works behind the scenes to create 95% mortgages with reduced risk and enhanced profitability for lenders.
The scheme, run by Market Mortgage and backed by Capita PLC, offers a variety of risk-reduction techniques tailored to the lender’s needs, including an option to partner with private investors who share the risks and rewards of high-LTV lending.
Own New is expected to be available to homebuyers in the autumn when the first lenders to join the scheme will be announced.
Housebuilders are joining now, with no fees or cost commitment, to ensure they can be trained and ready to use Own New when it goes live.
Housebuilders pay a small fee to Own New on completion of a sale and there is no cost to the customer.
Own New will assist people who have low deposits and those with non-standard circumstances, such as those who are self-employed or have yet to build a credit score.
Eliot, founder of Market Mortgage, said: “Own New has been developed in close collaboration with lenders, housebuilders and brokers in a way that works best for all parties. It is simple to use, profitable for lenders, and a cost-effective enabler for housebuilders.
“The end customer benefits by securing a standard 95% mortgage at a competitive rate by following the usual application process with their lender.
“We have developed a range of ways to reduce risk and are working with a variety of lenders to find the solution that best suits them.
“We knew that to be successful, we needed to develop a straightforward scheme that is both easy to use and is commercially the best option for all parties.
“Nothing changes for the buyer. People buying new homes from participating housebuilders will apply for a mortgage of up to 95% of the purchase price through a participating lender.
“For lenders, we appreciate that their needs will vary based on their size, structure and funding. To address this, we have created a range of options and found ways to tailor Own New to the needs of any lender.
“Our aim is to enable people to own their first or next home without relying on a ‘bank of mum and dad’, or on unrealistic expectations of savings or equity.
“We are on target to have more than 100 developers join the scheme this year, with members ranging from national PLCs to smaller regional housebuilders. It’s important that this is available to all developers in the country, large and small, so lenders can make these mortgages available to many more customers.”
“Own New can help buyers across the country, whether they are buying a new house or a new apartment. There are no regional variations and no upper price cap.
“This is a scheme which can give access to the first or next stage of the property ladder, supporting this crucial sector of the economy by helping people to buy a home.”
