Yes, it is true, the Nationwide has brought back the first 95 percent mortgage that we have seen in what feels like a long, long time.

The only catch is that borrowers would have to fix for two years at 7.18 per cent, a rather large 5.18 per cent above base rate.

It is expensive and at least £25,000 must be borrowed but at least there is no arrangement fee.  The Nationwide’s current customers looking to remortgage will be pleased to see this on their list of mortgage products and no doubt several mortgage advisors will also be pleased, however, first time buyers have been excluded.

Despite these restrictions, it is a sign of slightly relaxed criteria and hopefully a sign of good things to come.

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