Vernon Building Society has launched a new 95% loan-to-value (LTV) mortgage and opened its distribution to intermediaries.

The 5-year fixed rate is priced at 2.99% and comes with an arrangement fee of just £699.

The 95% LTV rate is available on purchases across England and Wales, excluding London and the South East.

It can be taken up to a maximum term of 35 years with a maximum age at end of term of 85 years.

The mortgage is available on mortgages from £120,000 to £300,000, on purchases with a minimum valuation of £125,000.

The rate is fixed until 31.3.27, followed by Vernon’s standard variable rate (SVR), currently 5.2%.

Brendan Crowshaw, head of mortgage and savings distribution at Vernon, said: “We’re delighted to offer our 95% LTV mortgage through brokers in addition to our direct channel.

“We know that saving a deposit remains an enormous challenge for many of your clients, but it’s not the only barrier to buying.

“All your clients – including those borrowing at 95% – also benefit from Vernon’s common-sense approach to underwriting.

“We’ll take time to really understand the case and, where possible, find a way to say yes.”