Skipton is the latest lender to issue mortgages designed for the government’s First Homes scheme.

First Homes is a programme that offers buyers a discount of at least 30% on new build homes to local first-time buyers (FTBs) and key workers.

The new products comprise a two-year fix at 2.19% and a five-year fix at 2.21%. Skipton says it will also lend up to 95% LTV of the discounted amount of new build houses and flats on the scheme.

First Home borrowers will also receive priority underwriting, it adds.

Skipton head of mortgage products Charlotte Harrison says: “This new scheme provides a great step and opportunity for FTBs, which I hope will grow over coming months and years.

“As a mutual it’s important we continue to support customers and help them achieve their home ownership aspirations, so I’m pleased that at Skipton we’ve expanded our mortgage range to lend to those individuals looking to use the First Homes scheme.”

And new build lead Rachael Hunnisett adds: “With the distance between average wages and average house prices growing further apart, we need to see great innovation in the mortgage sector to support the next generation of FTBs.”