Post Office Money has launched a new range of mortgages aimed at first-time buyers.

The range offers 95% LTV deals across two, three and five-year terms, all with no arrangement fee and the added benefit of offering £500 cashback and a free valuation.

Deals include:

• 95% LTV two-year fixed rate at 3.89% (no arrangement fee, free valuation and £500 cashback on completion)
• 95% LTV three-year fixed rate at 3.98% (no arrangement fee, free valuation and £500 cashback on completion)
• 95% LTV five-year fixed rate at 4.09% (no arrangement fee, free valuation and £500 cashback on completion)

Owen Woodley, managing director of Post Office Money, said: “We are continuing to improve our mortgage offering, so as to remain inclusive for all those wishing to buy a home.

“We know from our research that prospective homebuyers (30%) see the deposit as the biggest barrier to homeownership, so we hope the launch of our 95% LTV deals will prove a particular help for those struggling to get on the ladder.”