Vernon Building Society has launched a five-year fixed-rate mortgage at up to 95% loan to value, with no arrangement fee.

The 3.49% five-year fix is available on purchases only, through intermediaries and direct from the lender.

The rate is fixed at this level until 31 October 2026, when borrowers will revert to the lender’s standard variable rate of 5.2%. Early repayment charges apply for the first five years. This product is available for remortgages.

The mutual says its 95% mortgage is on offer for loans between £95,000 and £300,000 across England and Wales, but this excludes London and the South East.

Vernon Building Society head of mortgage and savings distribution Brendan Crowshaw says: “We’re currently seeing strong demand for high LTV loans from first-time buyers and this low-rate mortgage comes with no arrangement fee to help minimise the buyer’s upfront costs.

“Plus, our common-sense approach to underwriting means we’ll consider every client’s circumstances on an individual basis.”