The lender said these mortgages, which would be coming to market ‘soon’, would be available to purchase and remortgage customers on houses, flats and maisonettes for a maximum of 30 years.

However, it revealed the deals would not be available on new build properties or to customers who wanted to raise capital during a remortgage. What’s more, flats and maisonettes must be in buildings with four storeys or fewer and must not ex-local authority or ex-MOD properties.

Sarah Green, head of customer acquisition, group mortgages at Virgin Money said: “Virgin Money are excited to announce our support for customers looking for low deposit mortgages.

“It’s encouraging to see that the government’s Mortgage Guarantee Scheme is off to a such a strong start and we are pleased to be offering a wide choice of products to new and next time buyers as well as remortgage customers.”

Other lenders, including Santander, Barclays and HSBC, announced their product range as part of the Mortgage Guarantee Scheme in mid-April.

Although Virgin has not revealed the launch date of its products it said it would be in touch with intermediaries when the deals were available.