For many aspiring homeowners, the dream of homeownership often seems out of reach because of the prospect of saving for a sizable deposit. While there is the 95% mortgage scheme available for existing homes, this doesn’t often cover new builds, as they typically require a higher deposit.
Some lenders do offer their own versions, but Own New aims to collaborate directly with lenders and developers to offer low deposit mortgages with competitive rates. Let’s discuss what this looks like and what it could mean for you.
Who can use Own New?
Own New is open to both first-time buyers and those who have previously purchased a home, irrespective of the type of property they’re considering, be it a high-value property or a cost apartment.
How does Own New work?
The scheme allows you to arrange your mortgage directly with a participating lender, who will assess your ability to make repayments. If they approve your affordability, you pay your 5% deposit and become the sole owner of your new home, holding 100% ownership.
Behind the scenes, Own New is reducing lenders' risk, enabling them to offer competitive low deposit mortgages on newly built properties. New builds tend to devalue as they age, which makes them a riskier option for lenders.
What does Own New cost?
As a homebuyer, you won't incur any costs for using Own New; instead, the home builder pays a small fee upon completion of the sale. This makes the scheme even more attractive, as you can proceed with your purchase without worrying about additional expenses.
The advantages of Own New
One of the most significant advantages of Own New is that it accelerates the path to homeownership. Rather than spending years saving for a hefty deposit, you can purchase your ideal home sooner rather than later. It aims to empower more people to become homeowners, including self-employed buyers and those building their credit rating.
Moreover, Own New expands opportunities for existing homeowners with limited equity. If you're looking to take the next step up the property ladder, this scheme can be a game-changer, offering the chance to move sooner and unlock better options.
How to sign up for Own New
Because the Own New scheme has already garnered widespread support, with 50+ market-leading builders already signing up, many mortgage advisers are able to offer advice and guidance for getting involved.
If your preferred builder is part of Own New, then an adviser with specialism in new builds could help you secure a mortgage.
Fortunately, we have access to a host of specialist mortgage advisers and we’re ready to help you buy your dream home. Get in touch today and let’s discuss your options.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.