The Clydesdale and Yorkshire Banks said that they are committed to helping younger people get a foot on the property ladder and followed in the footsteps last week of banking giant HSBC, by offering first-time buyers a 95 per cent loan-to-value (LTV) mortgage. Interest rates for these new mortgages vary from 5.49 per cent to 6.19 per cent – and this includes a fee-free rate of 5.69 per cent which is fixed for a three-year period.

Clydesdale Bank retail director Steve Reid commented: “We know that buying your first home can be difficult and we are one of only a few lenders who remain committed to offering 95 per cent LTV mortgages.”

“We are focused on ensuring our rates remain competitive and are pleased to be able to introduce new lower rates on our range of mortgages for first time buyers.”

Connells, an estate agency based in Kenilworth, Warwickshire, has also launched a 95 per cent new-build mortgage in partnership with Skipton Building Society, aimed at buyers seeking new-build houses.

Connells Kenilworth branch manager Matt Walter said: “We know how important it is to help buyers who are struggling to raise the necessary deposit to secure a mortgage and get on or move up the housing ladder, so we are delighted to be able to offer this mortgage.”

“We believe this announcement will give hope to those first and next-time buyers who wish to purchase a new-build house but feel they do not have the financial ability to do so.”

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