Halifax has launched its first products under the government’s First Homes scheme, designed to help young people and key workers onto the housing ladder.

The lender will offer a two-year fixed-rate loan at 2.12% loan-to-value, with no fee and £250 cashback if the property has an energy performance certificate rating of A or B.

It also has a five-year fixed-rate loan at 2.13% LTV, with no fee and £250 cashback if the property has an energy performance certificate rating of A or B.

The first homes under the scheme were sold last June, which sees houses offered at 30% below local market prices to first-time buyers and key workers from that area.

The percentage saving will be passed on with the sale of the property to future FTBs, “meaning homes will always be sold below market value – benefitting local communities, key workers, and families for generations to come,” said the Ministry of Housing, Communities and Local Government.

The department aims to have 10,000 homes a year sold under the plan.

Halifax head of strategic partnerships and housing Andrew Mason says: “As the UK’s largest mortgage lender, we are committed to helping first-time buyers get on the housing ladder.

“With our participation in the First Homes scheme, we are able to give extra support to key workers, who do so much for our communities.”

Skipton Building Society joined the scheme last week. Chorley Building Society is also part of the programme, while Nationwide Building Society, as well as a range of local building societies and community lenders have pledged to support the move.