Leeds Building Society has launched two new mortgage products available up to 95% loan to value (LTV).

The 5% deposit deals are both five-year fixed rate mortgages and are designed to help first-time buyers achieve their ‘dreams of homeownership’, said the lender.

The mutual added that housing is now at its least affordable point since records began, with the average home costing over £294,329, which is over nine times the average salary of £31,928.

Jonathan Thompson, Leeds Building Society’s senior mortgage manager, said: “We know that saving a deposit is a huge barrier to homeownership for many first-time buyers, and we hope that by launching these two new 95% LTV products we can help even more people achieve their dream of getting onto the property ladder.

“With many people concerned with the ongoing economic uncertainty, we wanted to offer customers certainty with their payments. I’m confident that these products will be very popular, particularly with first time buyers.”

What’s new?

The first five-year fixed rate is a fee-free mortgage at 5.05%, available up to 95% of the property’s value on purchases only. It comes with a free standard valuation.

The second five-year fixed mortgage carries a completion fee of £999 but offers a lower rate of 4.95%. It’s also available up to 95% of the property’s value on purchases only. It comes with a free standard valuation.