Aldermore has reduced rates on its high loan-to-value (LTV) mortgage range by up to 0.5 per cent and removed its remortgage application fee.
The specialist bank has also introduced a new five-year fixed rate mortgage with no product fee for purchase applications up to 95 per cent LTV.
It has also reduced rates on its Help to Buy equity loan mortgage range, introducing no product fee options and reiterating its service level commitments for new build applications.
Charles McDowell, commercial director of mortgages at Aldermore, said these changes will support those with smaller deposits looking to take the first step on the housing ladder.
He said: "We believe that first-time buyers are the lifeblood of the market.
"Our latest research shows that one in three believe buying their first home will be an extremely difficult process, with raising a deposit their biggest concern.
"We recognise that service is critical for all applications, but especially for New Build properties.
"Which is why we have a dedicated process ensuring all New Build applications receive an outstanding level of service meaning that we often have New Build offers issued within 48 hrs of receiving the full application.
"Whilst there is no quick fix to address the housing crisis, at Aldermore we listen carefully to customers and brokers to ensure our products give first-time buyers the best possible options in a challenging market."
The changes mean that its purchase-only products of up to 95 per cent LTV now come with two, three and five-year fixed rates from 4.98 per cent with a £999 product fee.
The two-year fixed rate is now from 5.18 per cent with no product fee, while the new five-year fixed rate has been introduced at 5.28 per cent with no product fee.
Remortgage-only products for up to 85 per cent LTV now come with no upfront fee, with a two-year fixed rate reduced to 4.98 per cent.
The new five-year fixed rate has been introduced at 5.08 per cent.
There are also changes with the Help to Buy equity loan and London Help to Buy scheme for purchase-only products.
These come with two, three and five-year fixed rates from 3.98 per cent with no product fee.
There is also a two, three and five-year fixed rate deal now from 3.78 per cent with a £999 product fee.
Malcolm Simpson, IFA at Carmarthenshire-based Sandringham Financial Partners, said: "Aldermore has been a good niche mortgage provider and they appear to be taking a positive approach to higher loan-to-value lending.
"Home ownership amongst the younger generation has fallen so sharply over the last decade for the well documented reasons so it is good to see a lender taking such positive steps to encourage home ownership amongst this target market.
"First-time buyers need as much help as they can get to obtain a foot on the property ladder and with house prices recently showing negative growth this could be a very good time to try and re-ignite certain sectors of the property buyers.
