From 23 September, a two-year fixed rate will now be available in the higher LTV bracket at 3.98% and for borrowers who want to fix for five years, a rate of 4.69% will be added to the range.

Rates will be cut on all existing two-year fixed rates and selected five-year fixes for products in the 85 to 95% LTV bracket.

Homeowners with a mortgage less than 85% will see rates increase on two-year fixed rate, two-year tracker and five-year fixed rate mortgages by up to 0.10%.

Last week, Santander said from 29 September it planned to lend 95% LTV mortgages without the assistance of the Help to Buy mortgage guarantee scheme which is due to expire at the end of next year.