Abbey is introducing two new deals for first time buyers, boosting the maximum LTV available to 97 per cent.
The two year tracker is available from 4.74 per cent and 5 year fixed rate from 5.34 per cent. Both products offer the option of a free valuation and 250 cashback.
Abbey has also launched two year fixed rates at 4.69 per cent and 4.89 percent as well as two year trackers at 4.44, 4.34 and 4.54 per cent. All have a maximum LTV of 60 per cent.
Head of mortgage marketing Lal Tawney says: One of the biggest challenges facing first time buyers is raising a deposit for their property. With this in mind, Abbey has eased the pressure by requiring a deposit of just 3 per cent which we feel offers more security than a 100 per cent mortgage and more flexibility than a standard 95 per cent mortgage.