Yorkshire Bank has cut the rate on its 95% loan-to-value mortgage, which sees this product now beat similar deals offered under the second phase of the Help to Buy scheme.
The bank's 95% mortgage is now priced at 4.99% fixed for three years, equating to a 0.5% rate cut.
This fee-free product also includes incentives of free valuation fees for all borrowers as well as a £250 rebate.
At this time, Yorkshire Bank has not announced any involvement in the second phase of Help to Buy, telling Moneyfacts.co.uk that it is "still reviewing the Help To Buy scheme proposition".
A few days ago NatWest and Royal Bank of Scotland confirmed they will be launching two and five-year fixed rate 95% LTV products under Help to Buy 2, offering rates of 4.99% and 5.49% respectively, that charge no product fees.
Halifax, meanwhile, unveiled a 95% LTV Help to Buy product priced at 5.19% fixed for two years. This product comes with a £995 fee.
On rate alone, Yorkshire Bank's deal matches NatWest's 4.99%.
However, the generous incentive package that includes free valuation fees and a £250 rebate makes Yorkshire's offering best value for money.
It has also been awarded the highest rating of five stars by Moneyfacts.co.uk.
"This deal is outside of the Government's Help to Buy scheme and really lays down the gauntlet to the entire mortgage market as it exceeds the best offer from banks that are partaking in the scheme," said Moneyfacts.co.uk Editor Sylvia Waycot.
"It is the lowest rate for a totally unrestricted mortgage deal - anything lower requires either some form of guarantor or that you belong to a specific local area."
Top 5 first time buyer mortgages
Find out more about Help to Buy: Equity Loan
Read our guide on Help to Buy: Mortgage Guarantee
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.