The mortgages are set to launch on Thursday 20 May.

Nationwide said that the new mortgage range will be available to those looking for their first home as well as new customers who are moving, ensuring as many people as possible can benefit.

The lender’s new 95% LTV offering will offer market-leading rates starting from 3.49%, with all products under 4%. There will be two and five-year fixed rates as well as a two-year tracker product, all of which will come with various fee options.

As with all of Nationwide’s mortgages, first-time buyers will get £500 cashback when they complete their 95% LTV mortgage with the society.

Henry Jordan, director of Mortgages at Nationwide Building Society, said: “Deposits and affordability are two of the major issues currently facing first-time buyers, making it harder than ever for them to get their first home.

“We believe that with the launch of our new market-leading 95% range, along with the recent introduction of Helping Hand, we are playing a leading role in helping to tackle both these issues and giving people even more choice as they look to move into a home of their own.”

He added: “As the UK’s biggest building society and second largest lender, supporting people into their first home is at the heart of what we do. As one of the leading lenders to first-time buyers, we feel confident returning to the 95% LTV market without the need for the Mortgage Guarantee Scheme.

“By not being part of the scheme, we can provide improved value to our members and this is demonstrated by the market-leading rates we’re announcing today.”

Nationwide is the latest lender in the UK to relaunch 5% mortgages. In March, Yorkshire Building Society was the first mainstream lender to relaunch 95% mortgages. However, the deal was only available to first-time buyers and strict conditions prevented lending for flats and new build homes.

In April, banks including Lloyds, Natwest, Santander, Barclays, HSBC UK and Virgin Money all signalled their intention to participate in a new UK government-backed 5% deposit scheme, which was unveiled by the Chancellor in the recent Budget.