The Vernon Building Society has launched a new five-year fixed rate available at up to 80% loan to value (LTV).
The new mortgage is fixed at 2.3% for five years and comes with no arrangement fee.
It adds to the Stockport mutual’s existing five-year fixed rates at 95% and 90% LTV.
Tom Gurrie, intermediary sales manager at Vernon Building Society, said: “We noticed a gap in the market for borrowers who have a modest deposit, but more than 10%, and want to benefit from a more competitive interest rate than available at 90% LTV.
“This mortgage allows them to fix into an attractive rate of interest for the medium term, without the upfront cost of an arrangement fee.”
The new five-year fixed rate is available through brokers and direct.