Mansfield Building Society has entered the Government’s Help to Buy equity loan scheme.
The lender has launched a 3.49 per cent three-year discount, which then reverts to Mansfield’s standard variable rate, which is currently 5.59 per cent.
It is available on home purchases up to a maximum of £450,000 and there is a £199 application fee and an £800 completion fee.
A free basic valuation, up to a maximum of £400, is included.
There is a 3 per cent early repayment charge in the first three years and borrowers are allowed to pay up to 10 per cent of the original balance during the discounted period.
Mansfield restricts its 95 per cent lending to properties in Nottinghamshire, Derbyshire and South Yorkshire, although for all other LTV bands it lends throughout England and Wales.
The Help to Buy equity loan scheme offers buyers a 20 per cent equity loan, interest-free for five years, which helps them buy a new build property from a participating housebuilder up to £600,000.
The scheme is open to first-time buyers and existing homeowners. The £3.5bn scheme is expected to help 74,000 homebuyers over the next three years. In January, the second element of Help to Buy is set to launch, a £130bn mortgage guarantee scheme, which was first revealed by Money Marketing’s sister title Mortgage Strategy in February.
Other lenders which have joined the scheme include Leeds Building Society, Halifax, Nationwide and Santander.
Earlier this month, Communities and Local Government revealed there had been 10,000 reservations for new homes using the scheme since it was launched in April this year. Some 3,000 of those have been added in the last month alone as in July the Housing Minister Mark Prisk revealed there had been close to 7,000 reservations using the scheme.