Metro Bank has reduced rates on its five-year fixed rate 90 per cent mortgages.

Five-year deals are now priced at 3.39 per cent for purchase applications. The interest rate for remortgage borrowers is 3.44 per cent.

The deals have been reduced by 0.2 per cent from 3.59 per cent for purchases and 3.64 per cent remortgages.

This is the second rate cut Metro Bank has made this year to its five-year 90 per cent mortgage deals which at the start of the year were 3.99 per cent and 4.04 per cent for purchases and remortgages respectively.

Charles Morley, director of mortgage distribution at Metro Bank, said: “We’re proud to have consistently remained one of the only lenders in the market offering 90 per cent LTV residential mortgages, at a time when most competitors had withdrawn their higher LTV products.

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“These latest rate reductions provide even greater value for borrowers with smaller deposits.”