Virgin Money has become the latest lender to offer 95% mortgages under a government scheme to make more home loans available to borrowers with small deposits. This brings the number of lenders offering mortgages through the second part of the Help to Buy scheme to four. Virgin Money's rates start at 4.29% fixed for two years on a 90% mortgage and 5.29% fixed for two years on a 95% loan. A three-year fixed rate costs 4.69% at 90% loan to value and 5.39% at 95% LTV, while over five years the rate at 90% LTV is 4.89% and the rate at 95% LTV is 5.49%. The rates are not the lowest on the market, but the mortgages are fee-free and anyone using one of the deals to buy a home can claim pounds 300 cashback as a contribution towards legal fees, valuation fees or the general cost of moving. Unlike the other Help to Buy loans available, they are open to those remortgaging as well as first-time buyers and those moving home. Anthony Mooney , director of financial services at Virgin Money , said: " Virgin Money is one of the fastest growing lenders in the market, and we want to continue to build our support for people's home ownership ambitions. Joining the Help to Buy scheme today, several weeks ahead of our original plans, further strengthens our commitment to consumers in this under-served part of the market." David Hollingworth of mortgage brokers London & Country said the rates would not be topping the best-buy tables, but the entrance of another big lender to the 95% mortgage market was welcome. He added: "The rates are also following the trend for low fee structures, which is bound to appeal to those with limited deposits." The second part of the Help to Buy scheme offers a taxpayer-backed guarantee on 15% of the mortgage which pays out if the property is eventually repossessed and sold at a loss.
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