The initiative, which aims to build 100,000 new homes for first-time buyers which will be available at a 20% discount, has been launched by the government some six months ahead of schedule.
Paul Smee, CML director general, said: “Mortgage lenders support measures that deliver affordable ways for people to access home-ownership.
“This new scheme should provide a modest additional flow of lower-cost housing for first-time buyers, which we welcome.”
But Smee warns that whilst lenders support the initiative in theory they will need to assess the risks associated with it.
Smee added: “Lenders will need to consider whether there are any specific lending risks involved, and we will respond to the consultation to help ensure that the scheme is practical and workable from a lending perspective.
“Once it is up and running, we will help signpost first-time buyers to government website information about the scheme.”
Aspiring home owners will be asked to register their interest in buying via the Starter Home initiative from the start of next year and the consultation on the scheme ends on February 9.