The lender, part of the Yorkshire Building Society group, has launched a 2.99% deal for borrowers who have a 10% deposit.

This product is fixed for two years and comes with no fees, free valuation and £250 cashback on the completion of the deal.

Chelsea BS has also launched another new products targeted at first-time buyers and borrowers with smaller deposits.

It has launched a fee-free mortgage at 4.34%, fixed for two years.

Brendan Gilligan, product manager at Chelsea Building Society, said the mutual was hoping to attract more borrowers with small deposits.

“We understand the issues first-time buyers can have when trying to get a foot on to the property ladder,” he said.

“This is why we offer mortgages to borrowers who have just a 5% deposit and why we always strive to make our rates as competitive as possible, particularly for this group.”