Accord Mortgages has launched a mortgage range to help cover the cost of buying a first home by offering first-time buyers up to £6,250 cashback.

The cashback can be used to help offset the increase in stamp duty costs and will be sent to the customer’s solicitor along with the mortgage advance and released for use as soon as the mortgage completes.

With the stamp duty threshold due to increase from 1 April, the lender’s analysis found that the cashback offering is enough to help meet the extra money needed on first homes worth up to £500k.

The new offering includes a tiered range of five-year fixed-rate mortgages, starting at 5.19%, available up to 95% loan-to value (LTV), for first-time buyers, with free standard valuation.

Cashback will range from £2,500 on properties valued up to £350,000, with the highest tier paying £6,250 for properties valued up to £500,000.

Products will come with no fee and will be available for purchases of houses and flats including new builds up to 90% LTV in England, Wales, Scotland and Northern Ireland.

Accord Mortgages managing director Jeremy Duncombe says: “First-time buyers already have enough challenges to overcome in saving up sizable deposits and meeting the affordability challenges caused by increased interest rates and the current high cost of living.”

“We fear that finding thousands more to cover the additional tax burden resulting from the Stamp Duty changes announced in the Government’s Autumn Budget, will be a step too far for many.”

“That’s why we’ve decided to launch this innovative new product, with differing amounts of cashback that will be sent to the solicitor on completion to ensure the borrower doesn’t need to find further money up front, to provide a potential solution for aspiring homeowners who need it.”