Halifax has revealed it will be launching its 95 per cent LTV deals on Monday with help from the government’s Mortgage Guarantee Scheme.

The lender has just shared details of the rates and says that borrowers will need an “enhanced credit score” to qualify.

It will be offering a two-year fixed at 3.73 per cent with a £999 fee or at 4 per cent with no fee.

Alternatively, borrowers can fix for five years at 4 per cent with a £999 fee or at 4.2 per cent with no fee.

As well as launching new deals for borrowers with a 5 per cent deposit, Halifax is cutting a number of rates for first-time buyers and home movers with large deposits by up to 35 basis points.

The new 95 per cent LTV deals will be available for purchase only and not for remortgage.

Fees cannot be added to the loan if they take the LTV above 95 per cent.

Borrowers can be first-time buyers or home movers, but those purchasing new-build homes are excluded.

It must be the applicant’s only residence and they must not have an interest in any other property such as a buy-to-let or holiday home.

The maximum loan is £500,000.

The mortgage cannot be combined with any other schemes such as shared ownership, shared equity or right to buy.

A maximum income multiple of 4.49x will apply.

Credit commitments will be deducted in the affordability calculation even when the borrower intends to repay them before completion.