Atom bank said it has relaunched its 95% LTV mortgages with immediate effect.

The app-based lender is reintroducing the range with two and five years available for new purchases and remortgages.

The two-year fixed rate is priced at 4.09% and the five-year deal is 4.14%. Both products are fee free, offer £500 cashback and a free standard valuation.

David Castling, director of intermediary lending said: “Over the past year we’ve remained focused on doing the right thing for our existing customers whilst evaluating the right thing to do for new customers from the perspective of a responsible lender.

“With greater certainty, we believe now is the right time to bring 95% LTV mortgages back on sale and support more people to own their home.”

Atom said it took over £400m of mortgage applications in the second half of financial year 2020/21 with a particular focus on 90% LTV lending in recent months.