Loughborough Building Society has launched a new mortgage to the market under the government’s First Homes Scheme.

The scheme is designed to make it easier for first-time buyers to buy a home in their local area, by offering a discount of at least 30% off the open market value when buying a new-build property.

The Loughborough has confirmed it will lend up to 95% LTV of the discounted purchase price on eligible properties located in England and Wales.

The new product is a five-year fixed rate at 3.25% with a free standard valuation, and the society confirmed that all products quoted are subject to early repayment charges (ERCs).

National BDM at The Loughborough, Ashley Pearson, commented: “The government assistance that the First Homes Scheme provides is a step towards improving affordable housing solutions for prospective borrowers, and we’re really pleased to be involved in this important initiative.

“As a mutual, it’s important that we continue to support customers and help them achieve their home ownership aspirations.”

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