Accord Mortgages (part of Yorkshire Building Society) and Loughborough Building Society have announced new 95% mortgages for those borrowers with just a five per cent deposit.

Both are accessible to borrowers through a mortgage broker only, not directly from the lenders.

Accord Mortgages has strengthened it’s 95% mortgage range by introducing two new two-year fixed rate products and reducing the rate of its five-year fixed rate.

Products available are a two-year fixed rate of 3.79%, which comes with a £995 product fee, free standard valuation and £250 cashback. Or borrowers can choose a fee-free rate of 3.98%, which also comes with free standard valuation. Both of these mortgages are available to house purchase customers only.

Accord has also reduced the rate on its five-year fixed rate mortgage to 3.89% (was 3.99%), available with a £995 product fee and free standard valuation.

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Return to high loan-to-value lending

The Loughborough Building Society has also returned to 95 per cent lending with a two-year fixed mortgage.

Priced at 3.99 per cent, the product comes with a free standard valuation and is fee-free.

It will be available exclusively through mortgage brokers for purchase and remortgage.

Ashley Pearson, business development manager at The Loughborough, said: “It’s been a tough year for borrowers with a smaller deposit so I’m glad we can offer something for those who need it. The five per cent deposit can be from the borrowers’ own savings or gifted.”