The initiative allows first-time buyers to benefit from a discount of at least 30% on a new-build property’s market value.

A 2-year fixed rate is available from Newcastle Building Society, at 2.89% (3.9% APRC), and a 5-year fixed rate is available at 2.99% (3.7% APRC).

Stuart Miller, chief customer officer at Newcastle Building Society, said: “We’re pleased to launch our First Homes products, which will give brokers and their clients a competitive option on the pilot developments.

“By participating in First Homes, we’re delivering on our commitment to support first time buyers, especially those without access to the bank of mum and dad.

“It’s one of several innovative initiatives we’re involved in to help low-deposit borrowers get on and up the property ladder.”