Suffolk Building Society has launched two new fixed rate products up to 95% LTV aimed at helping first-time buyers.

The society confirmed that self-employed and new-build house applications will be accepted, while gifted deposits will be accepted in cases where applicants can demonstrate they have at least a 12-month rental history.

Both products are available at 95% LTV with a minimum loan of £75,000 and maximum of £500,000, as well as an application fee of £199 and completion fee of £999. The society’s two-year fixed rate is priced at 3.25% while the five-year fix is priced at 3.49%.

During the initial mortgage term, Suffolk also confirmed that it will offer fee-free overpayments up to 50% of the original loan amount.

“By offering fixed rates, we’re able to provide certainty over monthly payments, which should bring peace of mind to prospective home buyers, especially amid news of rising inflation, interest rates, and energy prices,” Suffolk head of intermediary relations, Charlotte Grimshaw, commented.

“We’re also really pleased to be able to welcome gifted deposits from renters who have family support as a route to home ownership. We recognise that the way people get on the property market has changed; gathering a lump sum for a deposit can be difficult, especially for those currently renting, and so increasing numbers of parents and grandparents are helping out family members in this way.

“The combination of 95% LTV, the security of a fixed rate, the maximum loan size, and the gifted deposit option will be a really compelling deal for intermediaries and their clients, especially as the five-year fixed option means we can assess affordability on product pay rate only and not apply a stressed rate scenario.”

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