Afin Bank has removed the product fee from its 95% loan-to-value five-year fixed rate mortgages for successful applications in May.

The specialist lender said the move would save borrowers £1,495 and could be particularly useful for first-time buyers seeking to improve affordability.

The fee-free offer is available on 95% LTV five-year fixed rate purchase mortgages in Afin Bank’s Prime range, priced at 6.49%, and its Professional range, priced at 6.34%, for loans up to £500,000.

Afin Bank is also offering free legal fees on remortgages during May, saving borrowers £900 on standard legal fees for mortgages below £1 million. The lender said the saving could rise to an average of up to £1,800 for loans between £1 million and £2 million.

Rob Lankey, national sales director at Afin Bank, said: “It’s tough for buyers at the moment, especially with interest rates rising. By removing the product fee on our 95% LTV mortgages we’re aiming to help borrowers free up their cash a bit more, so they could potentially buy their own home with just a 5% deposit.

“A saving of £1,495 could be particularly helpful for first-time buyers balancing deposit requirements alongside other costs such as legal fees and moving expenses. By choosing a five-year fixed rate, they are also locking in their monthly repayments during a possible period of interest rate volatility.”

Afin Bank supports borrowers who may struggle to obtain a mortgage from mainstream lenders where their circumstances do not fit standard affordability models. These include self-employed borrowers, contractors, people with multiple income streams, foreign nationals working in the UK on valid visas and qualified professionals.

The lender’s Professional range offers enhanced loan-to-income ratios of 6.5 for applicants with a recognised professional qualification, including overseas nationals on a valid working visa who can apply for a mortgage after six months’ residency in the UK.