The Cambridge has announced its re-entry to the 5% deposit market with a range new products which will be available from 5 May.

They include two-year year discount, two-year fixed and five-year fixed options, which have rates starting at 3.89% and come without completion fees.

The society said these enhanced low deposit products complemented its 90% LTV range launched six months ago and is aimed at first-time buyers and those seeking to move home with smaller deposits.

Kathy Bowes, intermediary manager at The Cambridge, said: “We’ve been able to support a large number of intermediaries and their clients over the last 12 months, but we know the 95% LTV options have been limited.

“We’re excited to be offering even more choice by further enhancing our low deposit options and making home ownership more attainable.”

Metro Bank, meanwhile, has launched a new five-year fixed rate 95% LTV residential mortgage product with a 3.89% rate. It is available for maximum loans of £570,000 with the mortgages being purchase only.

It comes just after Metro Bank launched into near prime residential mortgages in March. In February, it reduced rates and increased maximum loan sizes on its 85% and 90% LTV mortgages.

Charles Morley, director of mortgage distribution at Metro Bank, added: “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 customer.”