The Norwich & Peterborough Building Society has launched a 2.93% five-year fixed rate for borrowers with a 10% deposit.

Moneyfacts says this is the lowest five-year fixed rate currently available to borrowers at 90% LTV.

The deal is available to those buying a home or remortgaging and has a £1,295 product fee.

N&P also offers a 3.64% five-year fixed rate at 90% LTV with no product fee and free standard valuation, with £250 cashback on completion for house purchase customers, free standard legal fees for remortgage customers and £500 cashback on completion for first-time buyers.

Richard Barker, product manager for Norwich & Peterborough Building Society, said: “We’re delighted to launch this mortgage, which we think will prove extremely popular with first-time buyers. As a mutual with no shareholders, we are able to look after the interests of our members by using our profits to offer competitive rates.

“Buying a first property is a milestone which research shows is more important to adults under 40 than getting married or having children. We know how important it is to young people and want to do all that we can to help them facilitate this ambition.”

Rachel Springall, spokesperson at Moneyfacts, added: “Anyone looking to secure a low fixed mortgage rate over the longer term will be delighted by this new deal from Norwich & Peterborough Building Society, priced at 2.93% it is the lowest five-year fixed deal requiring a 10% deposit.

“Borrowers would be wise to take advantage of the option to overpay their mortgage whilst interest rates remain so low, this way they can increase the amount of equity in their home and reduce the term of the loan.”