With a rate of 3.59 per cent, the deal has a £999 product fee and is open to purchase and product transfer borrowers.
The Coventry has also cut the rate on its 95 per cent LTV five-year fixed rate deal from 3.89 per cent to 3.79 per cent.
Average 95 per cent LTV two and five-year fixed rates across the market now stand at 3.93 per cent and 4.09 per cent respectively, according to Moneyfacts.
Jonathan Stinton (pictured), head of intermediary relationships at Coventry Building Society, said: “This is great news for brokers and their first-time buyer clients. Our new competitive two-year fixed mortgage at 95 per cent LTV adds more choice to the market and means that more aspiring home owners will be able to take that all-important first step on the property ladder.
And the product is open to all purchase customers, so brokers can also secure a great rate for their clients looking for a higher LTV option.
“Plus, we’ve also recently widened our lending policy on bonus income and increased income multiples for loans greater than 90 per cent LTV, so clients could borrow more.”