A new mortgage product has been launched - designed to help first-time buyers get a foot on the property ladder.

Affordable housing provider Affinity Sutton has joined forces with leading High Street lender Santander to launch the exclusive shared ownership scheme.

In a first for the sector, Affinity Sutton is partnering with Santander in the pilot scheme which allows approved applicants to borrow up to 95 per cent Loan to Value (LTV) on between a 25 and 75 per cent share of the property.

As this is a pilot, the range is only initially available in branches across London and the South East.

The branches are linked exclusively with Affinity Sutton developments and will offer customers who have been approved by Affinity Sutton, a customer of Santander Corporate Banking, the opportunity to discuss their requirements face-to-face with a Santander mortgage advisor.

Under the scheme, borrowers will pay a mortgage on their share of the property and subsidised rent on the share they don't own to Affinity Sutton - as the Registered Provider (RPs).

Until now, shared owners have had to find a greater level of deposit and many have only been able to purchase the minimum share (25%).

But by reducing the deposit required, they will be able to buy the share that they can afford and will therefore also pay less rent to their Registered Provider.

Shared owners buying under the scheme will need on average a £3,600 deposit as well as approximately £3,500 purchasing costs.

Mark Washer, Group Finance Director, for Affinity Sutton, said: "This partnership builds on our already strong relationship with Santander and we are delighted to be leading the sector in helping first time buyers with a new mortgage product. This plugs a large gap in the market and offers purchasers of our shared ownership properties a real benefit."

Phil Cliff, Mortgage Director for Santander commented: "The Santander/Affinity Sutton pilot partnership once again signifies our commitment to helping rejuvenate the UK housing market.

"This initiative will help first time buyers get a foot on the property ladder and play a vital role in supporting the creation of more affordable housing across London and the South East. The new shared ownership project has been designed specifically to suit the needs of Affinity Sutton's customers.

In the first quarter of 2010, we lent one in five mortgages increasing our share of the mortgage market and proving to borrowers that we are a strong and consistent lender, focused on offering customers a variety of highly competitive and value for money products. In recent months, we have focused particularly on first time buyers launching special products and increasing the maximum LTV on new build properties.

"The addition of a shared ownership pilot is very exciting and underlines our dedication to helping first time buyers."

Jamie Ratcliff, Head of intermediate markets at the Homes and Communities Agency said: "As the government's national housing and regeneration agency, we welcome this innovative approach to improve the availability of mortgage lending to first time buyers, particularly as it involves no additional public funding.

"This pilot scheme complements our own work, aimed at building strong relationships with retail mortgage lenders, which is already having positive effects in terms of attracting new lenders and making shared ownership lending more competitive."

For more information on the Shared Ownership mortgage from Santander, borrowers should visit one of the 43 participating Santander branches. Customers will firstly need to ensure they are eligible for an Affinity Sutton property.