Newcastle Building Society has launched its range of 95% loan-to-value mortgages for first-time buyers under the government’s First Homes scheme.

The mutual says its range is among the first to come to market under the initiative, which allows FTBs to benefit from a discount of at least 30% on a new build property’s market value.

The range, available from today (23 July) offers a two-year fixed-rate loan at 2.89% (3.9% annual percentage rate of charge) and a five-year fixed-rate product at 2.99% (3.7% APRC).

Newcastle Building Society chief customer officer Stuart Miller says: “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 FTBs, 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.”

The Ministry of Housing, Communities and Local Government. launched the first discounted homes up for sale under this scheme last month in Bolsover, Derbyshire.

Lloyds and Nationwide Building Society, and a range of local building societies and community lenders, have pledged to offer high loan-to-value mortgages against First Homes properties.

The ministry says this scheme will sit alongside its range of options designed to help FTBs onto the property ladder.

These include the government’s 95% mortgage guarantee, Help to Buy, Shared Ownership and Help to Build schemes.