Sainsbury's Bank has launched four new 95 per cent loan-to-value (LTV) mortgage products aimed at first and second-time buyers.
The rates include two-year fixed rates at 3.49 per cent and five-year rates from 3.99 per cent each with £250 cashback and free valuation.
The move comes after the bank selected Openwork as its first broker network since completing the first phase of its intermediary launch with Legal & General and L&C Mortgages in April 2017.
David Buxton, head of banking at Sainsbury's Bank, said: "We believe the 95 per cent LTV market will continue to play an important role in the future of UK mortgage.
"This range of new products, paired with the incentive of free valuation and cash back will make it possible for first time buyers, and support second time buyers, to find their perfect home."
Paul Dorward, mortgage broker at Pad Financial, said the rates were competitive in the 95 per cent LTV space.
Mr Dorward said: "Cashback is welcome in this space because first-time buyers are trying to get cash together for all sort of fees."
He added that although the Sainsbury's mortgage deal wasn't the cheapest it was competitive.
Mr Dorward said: "It may well be down to the leniency of their credit scoring at this level."
It was back in 2016 that Sainsbury's Bank announced it was planning a return to mortgage lending after exiting the market more than a decade ago.
The supermarket chain’s financial services arm reported £65m underlying profit in its latest preliminary results, a cash pile it said enables it to re-start lending.