The deal is fixed for three years at 4.49% and comes with no arrangement fee.
The product has been launched in response to research from the banks, which highlights the problems faced by those struggling to move on from their first property.
Some 37% of first-time buyers are having to stay in their first property for longer than planned, as they cannot afford to move. This is most acute in London where 49% of those surveyed had not bought a second property within the timescale originally intended.
Steve Fletcher, director of retail banking, said: “The step between the first and second property remains a challenge for some and increasing moving costs are also adding to the difficulty of raising a sufficient deposit to afford a larger home.
“Our new 95% LTV mortgage is designed to support those who can afford larger mortgage payments but are struggling to save the required deposit.”
