Nationwide has revealed the rates for its new 90 per cent loan-to-value deals which will launch on Monday.

But the lender has stipulated that the products can not be used on flats, which will be a blow for some first-time buyers in areas like London where houses are beyond the affordability of many younger borrowers.

Houses that are less than two years old will also be excluded

The range will comprise two, three and five-year fixed rates as well as trackers.

• It will offer a two-year fixed rate at 2.49 per cent with a £999 fee or 2.74 per cent with no fee.
• Its three-year fixed rate will be 2.79 per cent with a £999 fee or 2.99 per cent without.
• Its five-year fixed rates will be priced at the same rate as its three-year deal, so 2.79 per cent with a £999 fee and2.99 per cent without.
• Nationwide will also be offering a two-year tracker starting at 2.59 per cent with a £999 fee and 2.84 per cent without.

The lender has warned that borrowers will be subject to stricter affordability and credit score checks and mortgage terms will be limited to 25 years.

All products are available direct with Nationwide (telephone, branch and online) as well as via brokers.

As with all the lender’s first-time buyer mortgages they come with £500 cashback and free valuations.

At the same time as revealing details of the new deals, Nationwide has announced that it is hiking rates on a number of other products tomorrow.

Rates in its 85 per cent LTV range will increase by 0.45 percentage points tomorrow and deals in its shared equity range will increase by 0.15 points.

Nationwide director of mortgages Henry Jordan says: “Our return to the 90 per cent market is aimed at helping people into a home of their own, but it is also important to give first-time buyers a choice to suit their personal situation. 

“That is why we are launching a range of fixed and tracker rate mortgages with different term and fee options. 

“Given the competitive rates on offer, we expect these to prove extremely popular when they launch on Monday. 

“By not having a set limit on the number of mortgages available, we aim to help as many first-time buyers get a foot on the ladder as we can at a time many may feel like they have been frozen out.”

On the rate increases Jordan adds: “These changes reflect a continually evolving market but will also ensure that the Society can support all mortgage applications and maintain the levels of service expected of us, especially once our new 90 per cent LTV range launches on Monday.”