Virgin Money has launched a new range of mortgages for people looking to build their own home or take advantage of a shared ownership scheme.

 The custom build product is billed as an innovative way for customers to design and build their own home.

 It offers plots of land with outline planning permission and services already installed.

 Customers can then choose the design and layout of their new home themselves.

 Virgin Money is offering three-year tracker mortgages at 4.79% for 80% LTV and at 4.99% for 85% LTV. Both are subject to a £1,995 product fee.

 Following the completion of their home, custom build customers can transfer to a new product with no early repayment charge.

 Virgin Money also says it will not pass on the charge for indemnity insurance, saving customers a further £1,300 in upfront costs on average.

 A new range of shared ownership mortgages are designed to be an affordable way for first time buyers to get on the property ladder.

 Buyers take an initial share of between 25% and 75% of a home and pay an affordable rent on the remaining share, owned by a housing association.

 Virgin is offering a range of two-year and five-year fixed rates for 85% and 90% LTV, all with £300 cashback and most with no product fees.

 Peter Rogerson, Virgin Money’s director of mortgages, said: “Virgin Money is committed to getting Britain building and helping more people achieve their dream of home ownership.

 “We are delighted to be the first mainstream lender to launch a custom build proposition, as we want to offer more choice in an undeserved section of the market that has huge growth potential.

 “Our new shared ownership range will support customers with a more affordable route into home ownership, giving people access to property who might otherwise be excluded.”

 Housing minister Alok Sharma said: “This government is determined to make housing more affordable, increase housing supply and help more people get onto the housing ladder.

 “Shared ownership and custom build housing can play a crucial role in this, helping to deliver the homes people want and supporting first time buyers.

 “That is why it’s great to see Virgin Money launching a new range of mortgage products to support aspiring custom builders design their dream home and those wishing to buy through shared ownership.”

 Virgin Money said it will donate £100 to Crisis, the national charity for homeless people, for every custom build and shared ownership mortgage completion.