First time buyers have had a difficult time when it comes to raising the money to get onto the property ladder over the past couple of years, and this is because since the onset of the global credit crisis lenders have been demanding much higher deposits than the traditional 5 percent that was once the standard. For many first time buyers the demand of 10 or 15 percent deposit has been too much, leaving them stranded when it comes to realising their dream of homeownership.

However, many first time buyers will be pleased to hear that one High Street building society is launched some new mortgage deals next week, which will include a mortgage of 95 percent Loan to Value, meaning that the buyer will only have to find a deposit of 5 percent if they qualify for the deal.

The mortgage product is being launched by the Skipton Building Society, and will be made available to both existing and new customers who apply directly to the building society. There are subsidiaries that borrowers can apply through but the minimum deposit available through these channels will be 10 percent.

The interest rates that Skipton is going to charge on its 95 percent LTV mortgage will vary based on whether the applicant is an existing customer or a new customer. For existing customers the interest rates for an 85 or 95 percent mortgage will be 4.99 percent to 6.99 percent with a fix of two years. For new customers for the same mortgages the rates are 5.19 percent to 7.19 percent, also fixed for two years.

Skipton said: “When we announced our strong 2009 annual results earlier this year, we said that we hoped to gradually increase both the volume and scope of our lending throughout 2010, and this new range is part of that process.”