Aldermore has launched a London Help to Buy mortgage.

Under the scheme, the Bank is now offering a two-year fixed rate product with an interest rate of 3.98% up to 75% LTV.

The London Help to Buy scheme is identical to the existing Help to Buy equity loan scheme, apart from the size of the government equity loan, which can be up to 40% in the London scheme (as opposed to up to 20% for the ‘rest of England’ scheme).

The scheme allows first and second time buyers to purchase new build properties in the capital up to a maximum value of £600,000 with a maximum loan of £450,000.

Charles Haresnape, Aldermore’s group managing director, mortgages, said: “I’m delighted to announce that the Bank is to support the London Help to Buy scheme.

“Aldermore continues to have a proud record of supporting homeowners across the UK. We believe the Help to Buy scheme has had an extremely positive impact on homeownership and recognise the particular difficulties for many people trying to buy in London. Our product and the wider scheme will help those looking to buy and make a home in the capital.”