Santander is launching tomorrow (9 January) a range of Help to Buy: mortgage guarantee products via its direct and intermediary channels.

The Help to Buy: mortgage guarantee range offers fixed and tracker rates starting from 4.99%, with a minimum deposit of 5% of the purchase price and no booking fees on properties up to the value of £600,000.

All products come with the Homebuyer Solution as standard, which includes a free valuation plus £250 cashback, helping customers with the upfront costs of purchasing a property. As Santander currently already offers products up to 90% LTV in its standard mortgage range, it will only be taking part in the greater than 90% up to 95% LTV band.

The products include a 4.99% two-year fixed rate with no fee, 5.49% five-year fixed rate with no fee and a 4.99% two-year variable rate tracker, again with no fee.

Miguel Sard (pictured), head of Santander Mortgages, said: “We’re pleased to be joining the second phase of the Government’s Help to Buy scheme. These latest products have no upfront fees and come with our unique Homebuyer Solution keeping down the cost for customers looking to buy with a 5% deposit and further extending our product offering to borrowers with smaller deposits, helping to achieve our aim of becoming the lender of choice for UK homeowners.

“The first phase of the Government’s Help to Buy scheme has already helped improve the flow of credit to good quality customers, and played an important role in helping both first time buyers and homemovers looking to buy new build properties. This has seen a welcome return of some confidence back into the market. Santander is committed to helping consumers get on, and move up, the property ladder, and our new Help to Buy: mortgage guarantee range is the latest addition to our competitively priced range of products.

“Santander 1|2|3 Current Account customers who pay their monthly mortgage payment by direct debit also benefit from receiving 1% cashback on maximum monthly mortgage payments of £1,000.”