Accord Mortgages is releasing a 95% LTV mortgage product on 17 March.

According to the Accord, it will be the first lender to return to offering products at the 95% LTV tier.

The offering is a 95% LTV 5-year fix at 3.99%.

Who said politics doesn’t change anything?

It is available exclusively via brokers, includes a £995 fee and a free standard valuation.

The intermediary only lender will not be using the government’s mortgage guarantee scheme for this product.

Its standard underwriting policy and terms will apply, but with a maximum 4.49% Loan to Income Ratio (LTI) to ensure prudent affordability.

The maximum loan size is £500,000, and flats and new build homes are not permitted.

Accord said it intends to monitor demand for its 95% LTV mortgages to ensure service levels are managed carefully.

Jeremy Duncombe (pictured), managing director of Accord Mortgages, said: “Part of our purpose as one of the UK’s largest building societies is to help people own their own home, and the unique challenges of the last year have made that harder than ever for some.

“Increasing house prices, the need to save for a larger deposit and limited choice in the higher LTV markets, means the goal posts have continually moved for many.

“We were one of just a handful of lenders that continued to offer 90% LTV mortgages during the pandemic and have been monitoring the market closely to ensure we carefully broaden our support to those with even smaller deposits.

“This new 95% mortgage will give brokers another option to help clients with smaller deposits realise their home ownership ambitions.”

“As the first lender to launch a new 5% deposit mortgage to the market, it’s important we balance demand with being able to offer the high levels of service brokers and clients expect.

“As such, this product may be withdrawn at relatively short notice, but we will continue to communicate our intentions proactively wherever possible.

“However, as more lenders join us in the 95% LTV mortgage market, either with or without the mortgage guarantee scheme, we’re hopeful buyers with just a 5% deposit will be able to benefit from a more sustained offering in the market.”