Newcastle Intermediaries has cut rates rates on its 95% LTV products of up to 0.26 percentage points on selected products.

A five year fix is available at 3.49% (5.0% APR) at a maximum LTV of 95% and also comes with a free valuation, 10% overpayment facility per annum.

Features include £500 cashback or free legal fees for re-mortgaging and an early repayment charge of 5% until 31.07.2020, 4% until 31.07.2021, 3% until 31.07.2022, 2% until 31.07.2023 and 1% until 31.07.2024.

In addition, the lender is also introducing a two-year base rate tracker up to a maximum LTV of 95% and at a current rate of 1.79% above Bank Base Rate (current pay rate 2.54%) (5.1% APR). It comes with no product fees or early repayment charges.

All products are available for purchase and remortgage including the option to raise additional funds up to 95% LTV for home improvements.

Stuart Miller, customer director, said: “It has been reported that 95% LTV mortgage rates have reduced by around 0.5% in the last six months, the most significant fall across all loan to value levels. This is great news for first time buyers who’re hoping to get on the property ladder this year.

“This is why at Newcastle Intermediaries we’re pleased to announce the reduction in rates on selected 95% LTV mortgages to help more first time buyers take their first step onto the ladder, or help next time buyers looking to move and remortgage borrowers to raise additional funds for home improvements.

“As well as reducing our rates, we’re also increasing our maximum loan size on all of our 95% LTV mortgages from £300k to £400k.”