By Ed Towner

January has seen a number of high loan-to-value (LTV) mortgages creep into the market as banks and building societies attempt to lift the gloom over the property market.

First-time buyers have particularly suffered in recent years, but there is light at the end of the tunnel as Yorkshire Building Society has released a new range of low deposit mortgage products.

The lender is to make price reductions on its two, three and five-year fixed-rate mortgage products. The rate cuts will focus on 90% LTV products across various fixed-terms.

Available from all Yorkshire BS branches, the loans start from a two-year fixed term offering 4.49%, a three-year deal paying 4.59% and a five-year product at 4.79%. The products are available with a £995 fee.

In addition to an interest rate drop, first-time buyers choosing Yorkshire's products will also benefit from no product fees, a free valuation or legal fees and £500 cash back.

Yorkshire Building Society is also changing the interest rate on its two-year fixed-rate mortgage, which will now be available up to 75% LTV offering 2.84%.

At present, Leek United Building Society offers the market-leading 90% LTV with an initial rate of 3.99%, followed by Lloyds TSB, which is charging 4.04% on 95% LTV.

This news comes as HSBC has committed to injecting at least £15 billion into the mortgage market in the hope that first-time buyers will be attracted by the low interest rates.

It is thought that this move will provide a catalyst for other banks and building societies to follow suit and also drop interest rates. First-time buyers need to get a move on to beat the end of the stamp duty tax holiday in two months' time.