Leeds Building Society has added a 95% loan-to-value mortgage to its product range, with a fee-free 5-year mortgage at a fixed rate of 4.30%.
It comes with a free standard valuation up to £999.
Ray Boulger, senior technical manager at John Charcol, said: “There are a few other 95% LTV deals available that are cheaper so the rate isn’t the most competitive but it’s always good news seeing another lender come to the market at 95% LTV.
“If there are no other benefits like a cashback, there may be better deals but one might consider Leeds’s criteria because at 95% LTV the criteria becomes particularly important.”
Matt Bartle, head of product and pricing at Leeds Building Society, said: “We’re constantly refining and enhancing our mortgage products and criteria to achieve our aim of helping people have the home they want.
“We work hard to offer a wide range of products that meet the needs of those who are often underserved by the wider market.
“This latest deal will assist homebuyers with smaller deposits, suiting people looking to take the first step onto the property ladder. It also complements our suite of products, which includes Help to Buy and Shared Ownership mortgages and an existing two year 95% LTV product.
“Fixed rates remain the most popular choice and a longer-term deal for five years enables borrowers to plan their future outgoings.”