Historically building societies held a market share of the 95% sector, but Help to Buy 2 offers banks a standing guarantor of 20% on each loan, meaning the risk is 75%.
In August 2013 banks offered eight 95% loan to value fixed rate mortgages yet by February 2014 this had increased to 58.
Sylvia Waycot, editor at Moneyfacts.co.uk, said: “It is interesting to see how the banks have so quickly dominated the fixed rate 95% loan to value market from the building society sector.
“Having been pushed out of the fixed sector, building societies have responded by offering a larger number of 95% variable mortgages than has been seen for some time.”
The 95% variable rate market is now being inhabited by building societies, who offered 21 products as of February 2014 in comparison to four from banks.
Waycot added: “The danger of a variable mortgage for a first-time buyer, however, is that you are at risk of fluctuating monthly repayments and the need for budgeting for increases is more important, especially with the current uncertainty of when rates will rise and by how much.”
Building societies have also upped their fixed rate offerings, with there being 48 products in February 2014 compared to 27 in August 2013.
