First-time Buyers

Two more lenders enter the 5% deposit mortgage market

Christina Hoghton
Written By:
Christina Hoghton

Metro Bank and Cambridge Building Society are both offering 95% mortgages, as availability of these deals continues to rise

Two more lenders have announced they are introducing 95% mortgages.

There’s been a boost in the low deposit mortgages as the Government’s Mortgage Guarantee Scheme launched this week.

However, neither of the lenders announcing their 5% deposit deals are using the scheme to offer their products.

Metro Bank has introduced a five-year fixed mortgage available on purchases only at an interest rate of 3.89 per cent and a maximum loan size of £570,000.

The lender said it had also added a top-up option for existing homeowners and rate switch options for existing customers.

Charles Morley, director of mortgage distribution at Metro Bank, said: “As one of the only lenders to consistently remain in the higher LTV market throughout the coronavirus pandemic, we’ve been working hard to launch into 95 per cent LTV residential mortgages.

“Our customers will benefit from a competitive five-year fixed rate.”

Cambridge to launch 95% deal

The Cambridge Building Society is introducing three 95 per cent loan to value (LTV) mortgage products from 5 May.

They include a two-year discount at 3.89 per cent, a two-year fix at 3.99 per cent and a five-year fix at 4.09 per cent.

The maximum loan size is £400,000, and an application fee of £199 applies on all three mortgages.

The two-year products are offered only through mortgage brokers, while the five-year is available directly to borrowers and through brokers.

The products revert to The Cambridge’s standard variable rate, which is currently 4.89 per cent.

“We’re excited to be offering even more choice by further enhancing our low deposit options and making home ownership more attainable,” said Kathy Bowes, spokesperson for The Cambridge.