Furness Building Society has relaunched 95 per cent loan-to-value deals but only for first-time buyers in its heartland.
The lender previously returned to 90 per cent LTV lending, but was forced to withdraw the deals quickly after being swamped with demand.
Furness has yet to reinstate its 90 per cent LTV range.
Its new deals for borrowers with a 5 per cent deposit are restricted to “LA” postcodes, which cover the area around Lancaster, Morecambe and South Cumbria.
Before lockdown the building society offered 95 per cent LTV deals across England, Wales and Scotland.
The building society says that as lenders dip in and out of the high LTV space it wants to target its support towards borrowers in its local community.
Furness is offering a choice of a two-year fixed at 3.29 per cent or a five-year fixed at 3.49 per cent with no fees.
Furness head of intermediaries Alasdair McDonald says: “There are some fantastic career opportunities for the younger generation here in Cumbria and South Lakes, but with such a lack of first-time buyer mortgages around it is really difficult for people to realise their dream of buying their first home.
“Developments are popping up all the time in our local towns and villages and we are happy to lend up to 95 per cent on new build houses.
“We will also look at help from close family members, allowing them to join the mortgage without having to be named on the deeds
“This can sometimes address early affordability issues, especially where there is potential for the applicants’ earnings to increase as their career progresses.”
