The cashback is not only designed to cover Stamp Duty but also legal fees and valuation costs.
The products are a 3-year fix at 3.69% with a £995 product fee and a 5-year fix at 3.99% with a £995 fee. Both deals apply to properties priced between £125,000 and £250,000.
The mortgages are intended to cater for the average buyer using the scheme, as according to the Council of Mortgage Lenders two-third of Help to Buy equity loan completions have on homes valued between £125,000 and £250,000, with the average being £200,000.
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.”
The remainder of the Help to Buy equity loan range remains unchanged, with products being available for properties up to £600,000 with £800 cashback.
Using the scheme the customer can buy a new build home with a 5% deposit, with the government loaning up to 20% of the property value and the mortgage making up the remaining 75%.
