The mutual is offering a three-year variable rate product starting at a discounted rate of 3.49%. At the end of the discount period it will switch to the standard variable rate, currently 5.59%.
Although other shared equity lending is restricted to regional borrowers, the Help to Buy product will be available across England.
Mansfield chief executive Gev Lynott said: “At The Mansfield we pride ourselves on offering a range of mortgage solutions to help people fulfill their housing needs.
“We previously offered mortgages that supported the FirstBuy and HomeBuy initiatives so it was only natural that we should support the latest government-backed initiative to help people get onto the housing ladder.”
Mansfield follows high street banks such as Santander and Halifax as well as building society heavyweights Nationwide and Leeds in creating a Help to Buy product.
The mortgage has an application fee of £199 and a completion fee of £800, which will be added to the loan. The valuation fee will be refunded on completion up to a maximum of £400.
It is available for home purchase up to a maximum of £600,000. Maximum capital repayment is 10% of the agreed advance each year.
Applications must be accompanied by confirmation from the HomeBuy agent that applicants are eligible for the scheme.
In May, Mansfield launched a range of 95% loan-to-value shared ownership mortgages aimed at first-time buyers.
Andy Frankish, new homes director at Mortgage Advice Bureau (MAB), said:
“The lender’s great relationships with local communities add to the credibility of the initiative, following in the footsteps of Leeds who put their first Help to Buy product to market last week. As support for the equity loan scheme gains traction and an increasing number of lenders feel comfortable enough to participate, reports of the initiative’s success seem imminent.
“However, while it’s encouraging that lenders are happy to offer Help to Buy products, we’d urge them to extend their reach into lending on New Build in general. With concerns over a housing bubble beginning to simmer, lending to aspiring new-build buyers with the capacity to buy properties outright would aid the critical new-build market without amplifying anxieties.
“There is still a significant disparity between buying new and buying second hand. New build is a critical sector of the market, and lenders should seek to reflect this with further mortgage products beyond the scope of the Help to Buy scheme.”
