The Family Building Society has cut the rates on its three and five year fixed rate family mortgages, as well as its offset and low-start mortgages.

The new three year fixed rate family mortgage is 2.99%, down from 3.34%, while the new five year fixed rate family mortgage is priced at 3.29%, down from 3.64%.

Meanwhile, the new two year discounted variable rate for the offset mortgage is 2.19% (from 2.39%) and the new average rate for the 90% LTV low start mortgage is 2.99% (down from 3.69%).

The five-year stepped fixed rate starts at 0.49%, rising to 1.49% and then 3.49%

Keith Barber, director of business development at Family Building Society, said: “With a shortage of suitable homes in the supply chain, lack of innovation by the mainstream lenders and expensive rates for those with only a 5% deposit, we know how tough it is for first time buyers to get into a home of their own.

“The ground breaking family mortgage champions the cause of this hard pressed borrower by making it easier to pool family assets without the need for families to gift money or remortgage their home. Since the launch of Family Building Society two years ago, we have responded to the need for innovative financial solutions by also introducing an offset mortgage for those that want their savings to work harder, for example.

“These reduced rates make our first time buyer mortgages among the most competitively priced. Indeed, according to Moneyfacts, the new family mortgage five year fixed rate is the lowest available for borrowers seeking a loan to value (LTV) of up to 95%.”