Loughborough Building Society has launched a new 95% loan to value two-year fixed-rate at mortgage 3.99%, with free standard valuation and no arrangement fee.

It is available exclusively through intermediary channels for the purchase and re-mortgage of properties in England and Wales. Early repayment charges apply during the loan term.

This product is not part of the government’s mortgage guarantee scheme, announced by chancellor Rishi Sunak in the 3 March Budget.

Loughborough Building Society business development manager Ashley Pearson, says: “It’s been a tough year for borrowers with a smaller deposit so I’m glad we can offer something for those who need it. The 5% deposit can be from the borrowers’ own savings or gifted”.

The number of 95% LTV products on the market has rocketed from 34 in April this year to 112 as of the start of this month, according to Moneyfacts data released yesterday.

Product numbers in all LTV categories from 60% LTV to the top end have increased across the same time period except at 80% LTV, the data adds.

This means that the total number of mortgage products on the market in May stands at 3,927, up from 3,842 in April.

Compared to May 2020’s number – 2,566 – this is a 53% rise in product choice.