The deals will be available from 27 March and will be sent to the customer’s solicitor along with the mortgage advance and released as soon as the mortgage completes.
Accord Mortgages said the level of cashback would be enough to meet the extra stamp duty on first homes worth up to £500,000.
From 1 April, the first-time buyer threshold will be revised down from £425,000 to £300,000, with properties priced between £300,001 and £500,000 taxed at 5%, and the maximum property value eligible for first-time buyer relief will drop from £625,000 to £500,000.
The no-fee products come in a tiered range of five-year fixed rate mortgages, beginning at 5.19% and available up to 95% loan to value (LTV) for first-time buyers, with a free standard valuation.
The cashback ranges from £2,500 on properties valued up to £350,000, with the highest tier paying £6,250 for properties valued up to £500,000.
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The deals are available for purchases of houses and flats – including new builds up to 90% LTV – in England, Wales, Scotland and Northern Ireland.
The firm said without assistance like this, many potential borrowers could “face having to delay buying their own home”.
Jeremy Duncombe (pictured), managing director of Accord Mortgages, said: “First-time buyers already have enough challenges to overcome in saving up sizeable 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 upfront, to provide a potential solution for aspiring homeowners who need it.”
