Santander has reduced the rate on its recently launched ‘My First Mortgage’ by 0.20% to 4.99%, effective 4 March.

My First Mortgage, which launched on 3 February, is available to first-time buyers looking to purchase an existing house, with a minimum £10,000 deposit and borrowing up to a maximum of £500,000.

The new product will continue to come with £0 fee and £250 cashback, and customers can apply exclusively via a broker or through a Santander adviser.

The reduction comes as the bank announces further cuts across all of its 85%+ LTV first-time buyer products by up to 0.38%, including a return to sub-4% lending at 90% LTV with a two-year fixed at 3.99%.

In addition, Santander has lowered many higher LTV home mover and new build specific products of up to 0.33%.

Santander UK director of homes David Morris says: “We launched My First Mortgage with the aim of helping more first-time buyers take their initial step onto the property ladder.”

“I’m proud to say that in the weeks since we’ve launched, we have done just that with many first-time buyers receiving offers of lending under My First Mortgage.”

“It’s fantastic to be able to go one step further and reduce the interest rate so soon after launch to that crucial sub-5% mark, that we know so many buyers are seeking when looking at higher LTV borrowing.”