There is a five-year fixed mortgage with a £999 fee and rate of 3.99%, along with a fee-free option with a rate of 4.09%.

The product is for purchases only and offers free valuations.

The mutual is the latest lender to return to the 95% LTV market joining the likes of Coventry, Buckinghamshire and West Brom building societies.

The launch also aligns with the government’s mortgage guarantee scheme, which goes live this month through high street lenders such as Lloyds Bank, NatWest and Santander.

Matt Bartle, director of products at Leeds Building Society, said: “We’re pleased to be able to announce our return to 95% LTV lending. More lenders returning to this sector gives signs of the market returning closer to normality and signals expectations of positive house price growth.

“It’s important to us to be able to assist borrowers who are not well served by the wider market, including buyers with smaller deposits, to deliver on our purpose to help more people save and have the home they want.”

He added: “We keep our products, rates and lending criteria under constant review to ensure we can continue to offer mortgages to meet the needs of customers who are looking to take their first step onto the property ladder.”