The mutual will lend up to 95 per cent loan to value (LTV) on the discounted amount on new-build homes and flats in the scheme.
It includes a two-year fixed rate at 2.19 per cent and a five-year fixed rate at 2.21 per cent and first-time buyers using the scheme via Skipton will receive priority underwriting.
The First Homes Scheme was launched in June last year with seven lenders signing up and offers residential properties with a discount of up to 30 per cent compared to market price. The first applicants were accepted in November last year.
Charlotte Harrison (pictured), Skipton’s head of mortgage products, said: “This new scheme provides a great step and opportunity for first-time buyers 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.”
Rachael Hunnisett, Skipton’s new build lead, said: “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 first-time buyers.
“I’m delighted that at Skipton we will be lending to those first-time buyers looking to use the First Homes Scheme, a fantastic addition to our lending proposition, one of many steps we are taking to support home ownership as a purpose-led mutual.”
To qualify for the scheme all applicants must be first time buyers and their household income must not exceed £80,000, or £90,000 in Greater London. They will also need a mortgage or home purchase plan in place for a minimum of 50 per cent discounted purchase value.
Local authorities can also set a lower income cap based on evidence, and may require a local connection based on residency, employment, family connections or specialist circumstances. Key workers can also be prioritised.
Newcastle Building Society and Leeds Building Society are among those who have launched products under the scheme.
