The scheme is designed to make it easier for first-time buyers to purchase in their local area, promising a discount of at least 30 per cent off the market value when buying a new-build home.
The mutual has introduced a five-year fixed rate product for the scheme, with a rate of 2.99 per cent. It is available up to 90 per cent loan-to-value, with a maximum loan size of £225,000 (rising to £378,000 for buyers in London).
Kieron Blackburn, commercial director at Dudley Building Society, said the mutual had seen the impact of rapidly increasing house prices on those who struggle to now meet affordability rules, which he said had prompted the lender to review its offering to better meet their needs.
He continued: “Our dedication towards providing solutions where others can’t has drawn us towards supporting this scheme, and our new product offering is designed to meet the needs of first-time buyers who struggle to get onto the property ladder.
“The government assistance that the First Homes Scheme provides is a step towards improving affordability for prospective borrowers, and we look forward to being involved in this important initiative to enable more people to buy their own homes.”
The First Homes Scheme launched in June last year, with an initial seven lenders on board.
