Santander has cut high loan-to-value fixed rates – as 85% LTV 2-year fixes now cost 1.45% with a £999 product fee and 1.74% with no fee.
Other reduced rates are 90% 2-year fixes at 2.20% with a £999 product fee and 2.49% with no fee.
Miguel Sard, managing director of mortgages at Santander UK, said: “By reducing the rates on our higher loan-to-value 2 and 5-year fixed rate product range, we hope to enable more first time buyers get a foot on the housing ladder.
“We know that appetite for homeownership remains high, we are working to support these customers make their dream a reality.”
Santander has also cut 5-year fixes, with 80% LTV rates standing at 2.04% with a £999 product fee and 2.29% with no product fee.
Meanwhile 85 LTV rates stand at 2.19% with a £999 product fee, 2.39% with no fee for first-time buyers only and 2.49% with no fee for purchase and remortgage.
Santander’s 90% LTV 5-year fixes cost 2.74% with a £999 product fee and 3.04% with no fee.
The bank is also extending its 2-year fixed rate first-time buyer exclusive at 85% LTV to all buyers
At the same time it is reducing its two and a half year fixed new build exclusive at 85% LTV to 1.84% with a £999 product fee.
First-time buyers can take out a free valuation and £250 cashback.