Aldermore is reducing rates on its Help to Buy: mortgage guarantee offering.

The lender is replacing its existing two-year fixed rate products with a standard, non-tiered offer.

The new product offers a 4.98% two-year fixed rate and is available up to 95% LTV.

It comes with a fee of £999 (no application fee applies) and it available from £25,000 to £400,000 on a capital repayment basis.

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.

“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. Four out of five of those mortgage completions were for first-time buyers, and Aldermore is proud to support those individuals looking to buy a home.

“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.”