Metro Bank has launched a 95% LTV five-year fix without help from the government’s mortgage guarantee scheme.

It is available for purchase only with a rate of 3.89% and a £999 fee.

A top-up option will be available for existing home owners as well as a rate switch deal for existing Metro borrowers.

The maximum loan size is £570,000.

In March Metro launched near-prime residential mortgages to help borrowers who are struggling to get a mortgage elsewhere on the high street. 

In February, the lender reduced rates and increased maximum loan sizes on its 85% and 90% LTV mortgages.

Metro director of mortgage distribution Charles Morley says: “As one of the only lenders to consistently remain in the higher LTV market throughout the coronavirus pandemic, we’ve been working hard to launch into 95% LTV residential mortgages. 

“Our customers will benefit from a competitive five-year fixed rate.

“We’ve also been making a number of new hires across our mortgages business recently, offering specialist lending expertise as we look to appeal to an ever wider range of mortgage customers.”