Virgin Money has launched a ‘Stamp Duty Buster’ mortgage as part of its Help To Buy (HTB) Equity Loan range, to assist first and next time buyers with all of the costs associated with buying a new build home.

The ‘Stamp Duty Buster’ is designed to assist those purchasing their new homes through the HTB Equity Loan Scheme and the help will come in the form of a £3,000 cashback payment. The cashback is designed to cover items such as Stamp Duty, legal fees and valuation costs, based upon the average house purchase price within the HTB Equity Loan scheme to date.

Latest market data provided by the Council of Mortgage Lenders indicates that around two-thirds of HTB Equity Loan completions to date have been for properties between £125,000 and £250,000, with an average of £200,000.

The new products are a three year fixed rate at 3.69% with a £995 product fee and for customers who wish to fix their mortgage rate for a longer period Virgin Money is offering a five year fixed rate at 3.99% with a £995 product fee. These products are available on properties with a price between £125,000 and £250,000.

The products are available with immediate effect through Virgin Money’s key new build intermediary partners.

The remainder of the HTB Equity Loan mortgage range remains unchanged and available for properties up to £600,000. They continue to offer £800 cashback which customers can also use to help with legal fees, valuation fees, or the general cost of moving home.

Anthony Mooney, director of financial services at Virgin Money, said: “We believe that our ‘Stamp Duty Buster’ is an innovative concept and that it will prove particularly attractive to first time buyers who make up 85% of all Equity Loan completions to date, within the Help to Buy Equity Loan Scheme.

“Virgin Money continues to support first time and next-time buyers who all form an important part of a healthy and vibrant mortgage market.”