Own New is going to launch a 95% mortgage product with Darlington Building Society early next year, alongside more than 50 housebuilders.

The product, open to first-time buyers (FTBs) and home movers buying new homes, will initially be available in the North East and Yorkshire but is set to expand nationwide.

Own New was designed by Market Mortgage to help homebuyers who can afford repayments but don’t have a ‘bank of mum and dad’ or other sources to lean on for a deposit.

Market Mortgage founder Eliot Darcy says: “The launch of our first 95 per cent mortgage product comes as Help to Buy has closed applications and the market is emerging from a difficult period.”

“Help to Buy has proven that there is a need to support low-deposit lending. Own New will plug the gap it leaves without reliance on taxpayer funding.”

“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 Building Society chief executive Andrew Craddock comments: “We are always looking for creative ways to help people get onto the property ladder, and this is particularly important now as the Help to Buy scheme comes to an end.”

The scheme is funded by housebuilders, who pay a small fee on completion of the sale.

Housebuilders from national PLCs to smaller regional developers have signed up to Own New. 

Mortgages will be available through Own New with more lenders in the coming months.

Barratt Homes is among the housebuilders offering Own New from the end of the month.  

Barratt Developments head of mortgage lender relations Adrian MacDiarmid adds: “Home ownership remains an aspiration for very many people, so we are very pleased to support products that help make that dream a reality.”

“We are looking forward to working with Own New and Darlington Building Society so that 2023 is a year to remember for our customers.”