Santander has become the latest bank to announce its intention to offer Help to Buy mortgages.

The company is to follow in the footsteps of rivals Royal Bank of Scotland, Natwest and Halifax in offering the government-backed deal.

Other banks to have signed up – that will offer the mortgages from a later date – include Virgin Money, HSBC, TSB, Lloyds Banking Group and Aldermore.

Barclays and Nationwide are the only big banks to refrain from saying that they too will join the scheme.

Santander’s commitment to the scheme means that 40 per cent of the mortgage lending market is now enrolled on the initiative.

Under Help to Buy, prospective homeowners will be able to secure a mortgage for a property valued at £600,000 and under with just a five per cent deposit. The government will then guarantee a further 20 per cent which will be paid back at a later date.

It is hoped that the scheme will help in the purchase of around 180,000 properties, although deputy prime minister Nick Clegg said earlier this month that the Bank of England could “shut it down” if it appears as though it is not working.