Meanwhile, Aldermore has reduced rates on its Help to Buy: equity loan mortgage range, introducing no product fee options and reiterating its service level commitments for new build applications.

Details are as follows:

Purchase only products up to 95% LTV:

• Two, three and five-year fixed rates now from 4.98% with a £999 product fee
• Two-year fixed rate now from 5.18% with no product fee
• New five-year fixed rate introduced at 5.28% with no product fee

Remortgage only products up to 85% LTV, now with no upfront fees:

• Two-year fixed rate reduced, now 4.98%
• New five-year fixed rate introduced at 5.08%

Help to Buy: equity loan & London Help to Buy: scheme (purchase only):

• Two, three and five-year fixed rates from 3.98% with no product fee
• Two, three and five-year fixed rates now from 3.78% with a £999 product fee

Charles McDowell (pictured), commercial director of mortgages at Aldermore, said: “We believe that first time buyers are the lifeblood of the market, our latest research shows that one in three (35%) believe buying their first home will be an extremely difficult process, with raising a deposit their biggest concern.

“We recognise that service is critical for all applications, but especially for New Build properties. Which is why we have a dedicated process ensuring all New Build applications receive an outstanding level of service meaning that we often have New Build offers issued within 48 hrs of receiving the full application.

“Whilst there is no quick fix to address the housing crisis, at Aldermore we listen carefully to customers and brokers to ensure our products give first time buyers the best possible options in a challenging market. This is why we are proud to announce reduced rates and new products across our High Loan To Value and Help to Buy mortgage ranges.

“These latest changes will support those with smaller deposits looking to reach the first step on the housing ladder.”