Two mortgage providers, Own New and Gable Mortgages, have launched a no-deposit mortgage product available exclusively to buyers at selected Barratt Redrow developments in England and Wales. The five-year fixed-rate option targets customers who can afford monthly payments but struggle to save the traditional deposit required for a standard home loan. The lenders aim to expand access to homeownership by addressing the upfront cost barrier alongside monthly affordability.
Helping those who can afford repayments
Own New, a housebuilder-focused lender, partnered with Gable Mortgages to create this new pathway into the market. The product is available through participating intermediaries and requires buyers to meet standard affordability and lending criteria. The launch marks Gable’s entry into the new build sector and Own New’s strategy to tackle two primary obstacles to buying a home: monthly costs and the need for a large lump sum.
The partnership connects Gable’s no-deposit proposition with Own New’s established housebuilder relationships. While many renters can prove they can pay for housing costs, saving the significant amount needed for a deposit has become increasingly difficult amid rising living expenses. This arrangement offers a route into homeownership for those previously excluded by the deposit requirement.
The product relies on the fact that buyers can demonstrate the ability to cover monthly costs through rent or other obligations. By removing the need for a cash deposit, the loan structure shifts the risk assessment to the borrower’s ongoing income stability rather than their savings history. This approach differs from traditional lending models that prioritize liquid assets as a sign of financial security.
Expanding access to new builds
Steve Mariner, Sales and Marketing Director at Barratt Redrow, noted the importance of removing barriers to purchasing. He said the proposition offers a responsible way to help buyers who can manage monthly payments but lack the savings for a deposit. The housebuilder expects the product to positively impact eligible customers looking to enter the market.
Chris Eaton, co-CEO of the Gable Group, highlighted the role of the housebuilder platform in bringing the product to market. He stated that working with Own New allows them to reach customers through a trusted channel. The collaboration aims to provide a viable alternative for those who previously believed homeownership was out of reach.
Eliot Darcy, Founder and CEO of Own New, emphasized the evolution of the company’s strategy. He noted that much of the previous discussion on affordability focused on monthly payments, but the new partnership addresses the deposit hurdle. By supporting both affordability vectors, the lenders hope to broaden the pool of eligible buyers across the new build market.
Leave a Reply