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 equity loan scheme, which is £200,000 based on CML figures.

Anthony Mooney, director of financial services, 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.”

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 there is 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 through Virgin Money’s new-build intermediary partners.

The remainder of the equity loan mortgage range is unchanged and available for properties up to £600,000.

The Help to Buy equity loan scheme allows a customer to buy a new-build home with a 5% deposit. The government then lends up to 20% of the property value, with a mortgage making up the remaining 75%.

The scheme allows customers to purchase a newly-built home with a smaller deposit whilst keeping monthly costs down as the equity loan is fee-free for the first five years.