First Direct has launched a 5% deposit mortgage to first-time buyers and home movers.

The mortgages are available to to £550,000, and come with no product fees, plus they can be taken over a term of up to 40 years.

They include:

· A two-year fixed rate at 2.79% with no product fee and a free standard valuation

· A five-year fixed rate at 2.94% with no product fee and a free standard valuation.

The bank is also offering customers the opportunity to make unlimited overpayments, whenever they choose.

The 5% deposit mortgages are available to first-time buyers and home-movers as well as existing First Direct customers looking to port their mortgage.

Chris Pitt, CEO of First Direct, said: “The stamp duty holiday turbocharged the property boom, which has shown few signs of abating. While the property market continues to speed along in the fast lane, first-time buyers have been left behind.

“While house prices continue to outpace deposits, we see this as a viable way of helping people onto the ladder.”