Leeds Building Society has cut the rate on its 95 per cent loan-to-value deal by 40 basis points.

The two-year fixed has come down from 3.24 per cent to 2.84 per cent.

It has no completion fee and comes with a free standard valuation.

After two years the rate reverts to a discount of 1.25 per cent from its standard variable rate for a further three years.

Leeds director of products Matt Bartle says: “Our 95 per cent LTV mortgage has been designed with first-time buyers in mind and this latest rate reduction will be very appealing to those looking to get onto the property ladder this year.”

He adds: “There have been some signs of increased activity in the UK property market in recent months. 

“Some analysts have suggested that an end to the uncertainty around Brexit may have been a factor for some first-time buyers and we would also expect to see more market activity as we move towards spring.

“We understand the importance of affordable housing, which is why we are always looking for ways to help buyers with smaller deposits, alongside Help to Buy and shared ownership mortgages, which complement our range of deals at higher LTVs.”