Hot on the heels of its 100% LTV mortgage launched earlier this month, Aldermore revealed a 95% LTV deal last week.
The mortgage has been launched in conjunction with Hitachi Capital and combines a two-year fixed rate at 80% LTV from Alder more with a 15% LTV unsecured loan by Hitachi Capital.
The two-year fix has a rate of 5.48%, a £999 completion fee and maximum loan size of £250,000.
The unsecured loan has a fixed rate of 5.90% for 12 years, a maximum loan size of £50,000 and permits overpayments at any time.
The scheme is being marketed via Barratt Homes but will be rolled out to other buil ders such as Linden Homes, part of Galliford Try, and Keepmoat Homes in due course.
Charles Haresnape, managing director of residential mortgages at Aldermore, says: “The biggest issue holding back creditworthy house uyers is their inability to raise a deposit.
“We are providing would-be home owners with choices in a market where the options for those with less than a 25% deposit are few and far
In January Barratt Developments teamed up with Hitachi Capital to offer parents’ of first-time buyers unsecu red loans of up to £50,000 to use as a deposit for an 80% LTV mortgage.
Under that scheme buyers only needed to raise a 5% deposit and Hitachi provides the remainder through an unsecured loan.