Aldermore has reduced its Help to Buy mortgage guarantee rate to 4.98% for 2-year fixes to 95% loan-to-value.
The product comes with a £999 fee for loans between £25,000 to £400,000.
Charles Haresnape (pictured), Aldermore’s group managing director, mortgages, said: “We are delighted today to be improving our Help to Buy: mortgage guarantee product to help borrowers with smaller deposits.
“Our new two-year rate is not tiered, with borrowers offered the same rate whether applying for a loan of 90% or 95% of the value of the property.”
Nearly 80,000 mortgages have been completed using the mortgage guarantee scheme since its launch in 2013, with four in five completions being for first-time buyers.
The scheme will end in December 2016.
Haresnape added: “Aldermore is pleased to help as many of those looking to take advantage of the programme as possible, before the scheme ends.”