Hinckley & Rugby Building Society has launched a 95 per cent loan-to-value (LTV) mortgage to help borrowers with small deposits and first-time buyers get on the housing ladder.
The two-year fixed rate mortgage has a 4.89 per cent interest rate and the £990 fee includes valuation on properties worth less than £1m. There are no charges for early repayment.
The market for 95 per cent mortgages is expanding rapidly, but some lenders are already raising rates 95 per cent mortgageson low-deposit loans; Yorkshire Building Society increased rates by 0.20 per cent last week.
Aldermore, which offers 95 per cent mortgages through the Help to Buy scheme, also increased its two-year fix deal to 5.43 per cent.