Santander has cut rates by up to 0.15 percentage points across its 75 per cent loan to value (LTV) range for those using the Help to Buy Equity Loan scheme.
A two-year fix is now available at 1.39 per cent and a five-year fix at 2.44 per cent up to 75 per cent LTV, both of which come with a £999 product fee.
Borrowers can also choose from a 2.5-year fix at 1.89 per cent or a five-year fix at 2.69 per cent, neither of which come with a product fee.
The lender has also enhanced its zero-fee fixed range products for purchase or remortgage, with two-year fixes available at 1.54 per cent up to 60 per cent LTV and 1.64 per cent up to 75 per cent LTV.
Meanwhile, fee-free five-year fixes are available at 1.99 per cent up to 60 per cent LTV and 2.29 per cent up to 75 per cent LTV.
First-time buyers can opt for a five-year fix at 2.19 per cent up to 75 per cent LTV.
Santander has also launched an online exclusive deal: a 75 per cent LTV five-year fix at 1.89 per cent, with a £999 product fee, available for purchase or remortgage.
Miguel Sard, managing director of mortgages at Santander UK, said: “By reducing the rates in our Help to Buy: Equity Loan product range, we hope to enable more first time buyers get a foot on the housing ladder.
“For home movers and those wanting to take the next step, we know that added costs can mount up, which is why we have made the changes to our range to reflect this.”
Kevin Dunn, mortgage and protection adviser at Leicestershire-based Furnley House, welcomed the Help to Buy rate reductions.
“Santander are very competitive,” he said. “They are a really good lender to deal with and, in my opinion, quite logical.
“The 1.39 per cent rate – you can’t get loads better than that. It is really good. The five-year fix could fit nicely for a mover so it ends when they start to pay interest on the loan.”