The lender said it would be re-entering this part of the market on Tuesday (30 March) with the launch of new products for people buying homes with a small deposit.

Kevin Purvey, director of Mortgage Distribution at Coventry Building Society, said: “Helping more first-time buyers get on the property ladder is a key focus for us and we recognise that one of the biggest hurdles facing many of them is the size of deposit required by lenders.

“We continued to support the market last year by lending at 90% LTV and our enhancement to 95% this week will provide further solutions for would be buyers.”

Coventry’s return to this tier of lending comes after Accord re-released 95% LTV deals two weeks’ ago. Bank of Ireland, TSB and Aldermore followed hot on its heels.