Dudley Building Society has launched a new mortgage product that will be available via the government’s First Homes Scheme.

The scheme assists local first-time buyers with the purchase of a new-build home, at a minimum discount of 30% against the market value, and gives prospective homeowners the opportunity to maintain full ownership over a property.

Under the scheme, Dudley has introduced a five-year fixed First Homes product, with a rate of 2.99%. The society added that to maximise its support for applicants, the product has a maximum LTV of 90%, with a maximum loan size of £225,000 for everywhere except London, where the maximum loan size will be £378,000.

The society’s commercial director, Kieron Blackburn, commented: “Our purpose of making homeowners’ dreams a reality is something that we constantly strive towards. We have seen the impact that ever-increasing house prices have had upon prospective borrowers, who struggle to meet affordability in their current circumstances. This has prompted us to continuously review our mortgage offering, so we can ensure it meets the needs of the underserved.”

Blackburn added: “The government assistance that the First Homes Scheme provides is a step towards improving affordability for prospective borrowers, and we look forward to being involved in this important initiative to enable more people to buy their own homes.”

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