Aldermore has lowered rates on many of its products and launched a replacement for the Help to Buy mortgage guarantee scheme.
Its new range for buyers with a 5% deposit includes a two-year fix with an interest rate of 4.98%.
The lender is also offering a three-year (95% LTV) at 4.98% and a five-year fix at an interest rate of 5.08%.
Aldermore has also reduced early repayment changes as well as introducing a new overpayment allowance of up to 10% of the outstanding balance every year.
Charles Haresnape, group managing director of Mortgages at Aldermore, said: “Our new products for 2017 offer something for everyone, whether it is lower rates or the ability to overpay without penalty.
“Additionally, we are proud to continue offering 95% LTV products to those with low deposits. With our research showing that the closure of the Help to Buy mortgage guarantee scheme could mean over half of first-time buyers having to adjust their purchase plans, Aldermore has reaffirmed its commitment to offering the products our customers truly want, especially where there is a very clear demand.
“Aldermore has always listened carefully to our brokers and customers to make sure our product range gives them the best possible option for their situation, and our individual underwriting process that looks at applicants on a case by case basis means that no-one will be unfairly penalised by a computerized approach.”
