Nationwide Building Society has reduced selected fixed and tracker mortgage rates at 95% loan-to-value by up to 0.5%.
The society has also raised the maximum loan size from 350,000 to £500,000 for all house purchase transactions up to 95% LTV, including for first-time buyers.
Henry Jordan, Nationwide’s director of mortgages, said: “We know that finding a deposit can be a challenge for those looking to take their first steps towards home ownership.
“The changes announced today offer competitive rates for those with small deposits, along with the added flexibility of being able to borrow up to £500,000, and are aimed at particularly supporting first time buyers, as well as those living in areas with higher property values.”
The society is offering a sub-3% rate for those with a 5% deposit. Rates for the 95% product start at 2.99% for the 2-year tracker with a £999 fee and 3.39% with no fee, a reduction of 0.50%.
To support customers looking for longer-term payment security, 3 and 5-year fixed rates at 95% LTV have been reduced, with the 3-year fixed product starting at 3.59% with a £999 fee and 3.89% with no fee, while the 5-year fixed is 3.74% with a £999 fee and 3.94% with no fee.
In addition, the maximum LTV for further borrowing as well as those looking to remortgage to the society with additional borrowing will increase to 90% LTV, apart from debt consolidation or repaying a non-Help to Buy second charge.