State-backed bank Northern Rock has launched a range of 90 per cent loan-to-value mortgages aimed at first-time buyers.
The range includes a two-year fixed rate mortgage at 5.99 per cent, a three-year fixed rate at 6.49 per cent and a five-year fixed rate at 6.59 per cent.
There are no product fees for any of the products in the range, which is available both direct and through selected intermediaries.
The move marks the lender’s first return to higher LTV lending since it was rescued by the Government three years ago.
Before it received state support the lender was well known for its aggressive lending strategy, which gave rise to a 125 per cent LTV product.
Your Mortgage Decision director Dominik Lipnicki says: “The more lenders that do 90, and hopefully 95 per cent LTV deals the quicker the housing market will get moving again. Without first-time buyers, everything stays where it is.”