Virgin Money has launched its Help to Buy mortgages ahead of schedule, but the rates fall short of the best 95% LTV deals on the market.
Its newly-announced 95% LTV Help to Buy residential mortgage range includes a two-year fixed rate charging 5.29% and a three-year fixed rate at 5.39%.
It also offers a 95% fixed-rate at 5.49%.
None of the mortgages have a product fee and purchase customers can claim £300 cashback towards legal fees, valuation fees or the general cost of moving home.
But these deals will disappoint those who were hoping that increased competition between lenders would force down Help to Buy mortgage rates.
Instead, Virgin has pushed them in the other direction.
RBS/NatWest already offers a two-year fixed rate through the scheme charging a lower rate of 4.99% at 95% LTV, with no product fee. Virgin's two-year fix is 0.3% higher.
HSBC offers a two-year fixed rate at 4.79% and a five-year fix at 4.99%. Both are 0.5% below Virgin's equivalent offerings, although they do have a £99 booking fee.
Even cheaper rates are available outside the scheme, via building societies such as Cambridge, Hanley Economic, Monmouthshire and Yorkshire.
Monmouthshire offers variable rates from just 3.75% to 95% LTV, while Cambridge offers a first-time buyer deal charging 3.99% in the first year.
Help to Buy critics have previously said that high rates are making a mockery of the scheme.
Virgin's 90% LTV deals start from 4.29% for a two-year fix, rising to 4.69% for a three-year fix and 4.89% for a five-year fix.
Director of financial services Anthony Mooney said Virgin Money was pleased to be widening the choice of products available to those looking to get onto or move up the housing ladder.
Virgin Money’s total lending to UK households increased by £870 million during the third quarter of 2013, according to Bank of England Funding for Lending Scheme data.
Virgin was the third largest cumulative net lender since the scheme was introduced in June 2012, with net lending of over £3.2 billion to UK households.
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