John Charcol is exclusively offering first-time buyers two new 90% LTV deals.

One of these new mortgages requires at least one family member to be involved and has a variable rate of 3.95% and no arrangement fee. The other requires no family involvement and is a fixed rate of 6.49% until 2015 with an arrangement fee of £195.

The first deal is with the Newbury Building Society. It is a Family Offset mortgage, with an initial rate of 3.95%, which is a 0.5% discount off its SVR for three or five years. There is no arrangement fee and the early repayment charge (ERC) is 1% in three or five years respectively, and unlimited ERC free part repayments are allowed. The maximum loan is £300,000.

One or two family members must deposit a total of 20% of the purchase price with Newbury, thus reducing the net loan from the lender’s risk perspective to 75% because it takes a charge on the savings.

Ray Boulger of John Charcol said: “Because this is an offset mortgage no interest will be paid on this deposit but the first-time buyer is only charged interest on the net 75% mortgage. Affordability is calculated on the whole 95% loan and monthly payments are collected as if it was a 95% LTV mortgage