Metro Bank has unveiled a new five-year fixed rate 95% LTV residential mortgage product.

The specialist lender is offering 95% LTV mortgages priced at 3.89% for borrowers looking to get on the housing ladder with a 5% deposit.

The maximum loan size available is £570,000 with the mortgages being purchase only.

There is also a top-up option available for existing homeowners and rate switch options for existing customers.

Metro Bank launched into near prime residential mortgages in March and claims it remains the only high street lender offering these mortgages. In February, the bank reduced rates and increased maximum loan sizes on its 85% and 90% LTV mortgages.

Charles Morley, director of mortgage distribution at Metro Bank, said: “As one of the only lenders to consistently remain in the higher LTV market throughout the coronavirus pandemic, we’ve been working hard to launch into 95% LTV residential mortgages.

“Our customers will benefit from a competitive five-year fixed rate. We’ve also been making a number of new hires across our mortgages business recently, offering specialist lending expertise as we look to appeal to an ever wider range of mortgage customer.”