Newcastle Intermediaries is offering new products to first-time buyers who may only have a 5 per cent deposit.
The new mortgages include a two-year fixed rate mortgage at 3.89 per cent with no reservation or completion fees, a free standard valuation and £500 cash back.
A two-year fix at 4.05 per cent (5.8 per cent APR) includes no reservation or completion fees, a free standard valuation and free legal fees
Steve Carruthers, head of mortgage distribution at Newcastle Intermediaries, said the legal fees package included all standard legal costs including Land Registry fees, Land Registry Priority Search, Bankruptcy Searches, Property Searches (such as Local Authority, water and drainage fees) and VAT.
Mr Carruthers said: "We are starting the year as we mean to go on, by giving a real helping hand to first-time buyers.
"Our product range is ideal for first-time buyers looking to keep the costs of purchasing their first home down, and the choice of rates and fixes will help brokers find the right choice for their clients.
"We understand that buying a home, especially a first home, is an exciting but daunting time and we hope to be able to make the experience much easier and straightforward."
David Hollingworth, director of communications at mortgage broker London & Country, said that Newcastle has a solid range of options in an effort to cater for first-time buyer requirements.
He added that the two-year fixed rate at 3.39 per cent with a £999 fee was as low a rate as anything seen on the market, but that the real strength was the different rate and fee combinations that give a broad choice, with the deal offering to pay legal costs being "unusual for purchase customers".
He said: "It is a comprehensive set of options that should help meet the individual needs of the borrower."
