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Lenders are bringing back mortgages for borrowers with a 10 pc deposit in a boost for first-time buyer.

Nationwide and Metro Bank will offer 90 pc loan-to-value (LTV) deals after they were axed during lockdown.

The number of low-deposit deals had decreased as lenders cited concerns over a house price crash and fear of homeowners entering negative equity.

Nationwide cited the Chancellor's stamp duty holiday as a factor behind its decision to re-enter the market.

It says there is no limit to the number of loans it will be issuing to first-time buyers, but will only lend on houses that are at least two years old.

Two, three and five year fixed-rate and two year tracker products became available a few days ago.

Metro Bank has reintroduced 85 per cent and 90 pc LTV five year fixed deals at 2.99 pc and 3.29 pc respectively.

Both products have a £999 product fee and the maximum property value is £600,000. Customers who are furloughed will not be accepted.

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