Help to Buy deals are undercut just two days after launch Under phase two of the Government's Help to Buy scheme - which offers mortgages to those with small deposits to enable buyers to purchase a property - major high street banks have begun to unveil their rates. Santander became the latest lender today to say it will take part. Only Halifax and NatWest have announced the rates they are offering. Halifax and Bank of Scotland, brands under Lloyds Banking Group, unveiled much higher rates under the Help to Buy scheme, offering a rate of 5.19pc on their two year fixes, with a £995 fee. Prime Minister David Cameron has defended the scheme for giving the right to buy to young Britons whose parents cannot afford to hand them a deposit. Critics say it not only exposes the taxpayers to property market losses - the Government will offer up guarantees of £12bn on up to 15pc of each mortgage - but that it could also create another dangerous bubble in house prices. With the rate offered by Clydesdale and Yorkshire banks beating those under Help to Buy, it begs the question as to whether the Government scheme is necessary. David Hollingworth of broker London & Country Mortgages, said: "The rate offered by Clydesdale and Yorkshire is definitely a good deal. Although it's limited to first-time buyers only, there's no question that this is a leading rate. Not only does it match the rate offered by NatWest/RBS, it is fixed for three years rather than two, and it offers freebies like cashback and free standard valuation. Borrowers won't care that these mortgages aren't backed by the Help to Buy scheme, they'll look at the rate alone and know that Clydesdale and Yorkshire are offering a better deal. He said that the rate cut was "an early indicator of the positive effects provoked by Help to Buy," as competition is increased. On the Clydesdale/Yorkshire loans, initial monthly repayments would equate to £584 on a 25-year mortgage of £100,000, £876 on £150,000, £1,460.02 on £250,000 or £1,752 on a £300,000 loan. Earlier this week, Martin Lewis, founder of consumer help website MoneySavingExpert.com, said that the Help to Buy mortgages, while cheaper than existing 95pc loan-to-value (LTV) mortgages, were "still very costly compared to normal mortgage rates." He added: "To those going for this scheme, do consider if you could push to a 10pc deposit - doing that would hugely slice your monthly repayments." The Post Office cut a number of its mortgage rates just a few days ago, with its five year fix for borrowers with a 10pc deposit at a competive rate of 4.45pc, with a £995 fee. Although it falls behind current market leader HSBC, the rate cut suggests the number of lenders battling to offer attractive rates on mortgages, for those who have smaller deposits, is on the rise. Telegraph Personal Finance Editor Richard Dyson answers your questions on Help to Buy Best fixed rate mortgages: two, three, five and 10 years More: Clydesdale Bank mortgages More: Yorkshire Bank mortgages