Aldermore has reduced its Help to Buy mortgage rates by more than 1 per cent, increasing its support for first-time buyers.
Aldermore will be replacing its existing two-year fixed rate product with a standard, non-tiered offer.
The new product is a 4.98 per cent two-year fixed rate with a loan-to-value (LTV) of up to 95 per cent.
There is a fee of £999.
The minimum loan size is £25,000, with £400,000 set as the maximum on a capital repayment basis.
Charles Haresnape, managing director of mortgages for Aldermore’s Group, said: “Almost 80,000 mortgages have been completed with the support of the mortgage guarantee scheme since its launch in 2013, and it has had an extremely positive impact across the UK.
“With rising house prices, many first-time buyers are struggling to raise the initial deposit they need to get on the housing ladder.
“With the Help to Buy: mortgage guarantee scheme set to close in December 2016, Aldermore is pleased to help as many of those looking to take advantage of the programme as possible, before the scheme ends.”
A mortgage adviser from Just 4 Mortgages said: “Anything that helps out first-time buyers in the current housing market is a real bonus, so it is great to see Aldermore making changes.
“However, how much different this will actually make to uptake of the scheme when the likes of Barclays are already offering significantly lower rates remains to be seen.
“Plus, the mortgage guarantee scheme has just three months left to run, so many who aren’t yet ready to buy will still miss out.”
