Rates start from 5.79% for a two-year fixed rate.

Ben Thompson, managing director Legal & General Mortgage Club said: “The market, for understandable reasons over the last few years contracted and in the process became totally risk averse.”

He added Kensington has brought a new approach and some welcome competition to a flat market.

“Most of all they are, in this example giving customers a much needed chance of stepping onto, or moving up the property ladder, without the need for an impossibly large deposit,” he said.

Charles Morley, head of sales at Kensington, said: “Our research tells us that the market needs higher LTV products where responsible lending decisions can be supported by consistent, individual underwriting.”

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He added many first-time buyers lack sufficient credit histories to satisfy a lender barring which excludes them from their first homes.

“We use an experienced team of underwriters alongside our technology, which means we are able to consider all of an applicant’s circumstances even if they do not have a significant file of historic activity with the credit rating agencies,” he said.