Skipton Building Society has launched a 95 per cent loan-to-value mortgage for new build properties which it will distribute through its estate agency subsidiary Connells Group.
It is also available through another of its subsidiaries, The New Homes Group, which specialises in new-build homes.
The product is a two-year fixed rate at 5.99 per cent. There is a £195 application fee and there is no completion fee.
The maximum loan size is £300,000 and there are early repayment charges of 3 per cent until November 30th 2013.
Skipton BS head of products Kris Brewster says: “We believe the market has now stabilised sufficiently to make extending this to new builds a possibility, subject to our usual prudent lending criteria. Builders are a vital cog in the chain of the housing market.
“Without them, we would not have the kind of starter homes which enable first time buyers to get a footing on the housing ladder – or quality new homes for people ready to move up to the next rung.”