Yorkshire Building Society has amended its new build mortgage range to appeal to borrowers with smaller deposits.
The lender has increased the maximum loan-to-value (LTV) in the range from 85 per cent to 90 per cent.
The new build products are available to borrowers buying houses or flats and come with free standard valuation and £250 cashback on completion.
Under the 90 per cent LTV range, borrowers can access a two-year fixed rate at 2.16 per cent for house purchases and a two-year fixed rate at 2.46 per cent for flat purchases.
A five-year fixed rate at 2.69 per cent is also available for house purchases and a five-year fixed rate at 2.99 per cent for new build flat purchases.
All products come with a £495 fee.
Janice Barber, mortgage manager at Yorkshire Building Society, said the mortgages have been introduced to help people with smaller deposits buying new-build properties.
She said: "Buying a house can be stressful enough but we know that buying a new-build property doesn’t always go to plan and delays can happen.
"That is why one of the benefits of our new build exclusive range is that all mortgage offers are valid for six months, and we can look to extend the offer for a further six months if needed.
"We are also doing what we can to keep the upfront costs of buying a house down for new home buyers - our mortgages currently come with a low fee, free standard valuation and cashback."
David Hollingworth, associate director of communications at London and Country Mortgages, said: "Accord has already made the move to support new build purchases with higher LTV recently and so it’s no surprise to see that criteria being rolled out to the Yorkshire BS brand.
"Offering higher LTVs especially on flats is a welcome move and should help open up the new build market to a broader range of customer, including first time buyers."
rachel.addison@ft.com
