Kensington Mortgages has announced the addition of a high loan-to-value mortgage to its residential range.
As of tomorrow (12 September), the lender will offer a 95 per cent loan-to-value (LTV) mortgage to first-time buyers and home movers on two and five-year fixed terms - starting from a rate of 4.64 per cent on a two-year term.
Rates on the lender's other fixed term buy-to-let range will also be reduced tomorrow, with core products at the higher level 85 per cent LTV decreasing by up to 0.2 per cent and starting from 3.99 per cent for a two-year fix.
A Kensington spokesperson said the changes were designed to offer greater flexibility to borrowers.
Craig McKinlay, sales and marketing director at Kensington Mortgages, said the challenge of saving for a bigger deposit can hinder the first steps of buying a home.
He said: "These latest updates further reinforce our commitment to supporting underserved borrowers across the UK, a mission has always been at the heart of Kensington, by improving the options to individuals looking to step onto or up the housing ladder.
"We have made a number of significant changes to our product range over the last six months, all of which have been received positively by intermediaries, and this latest update shows that we remain committed to developing our proposition to provide even more support to advisers and their clients."
Kensington has now expanded its 90 per cent LTV residential range distribution to all of its registered brokers.
Earlier this year, Kensington launched a residential options range to help those borrowers with recent credit rating issues.
rachel.addison@ft.com
