The bank said it would participate in the scheme from January and follows a number of other lenders in declaring support for the controversial scheme.

The lender said it would confirm product specifics and application details towards the end of the year and would not warehouse loans until January as launch lenders Halifax, NatWest and RBS plan to do.

A Santander spokesperson said: “Santander is pleased to confirm it will be participating in the government Help to Buy mortgage guarantee scheme when it [previous launch date] officially launches on 2 January 2014.

“Santander welcomes initiatives that help ease the flow of credit to consumers and supports home-ownership, and has participated in other such government schemes.

“Nearer the time we will confirm details of products and the application process. Some lenders are already taking applications for the scheme ahead of the January launch date. This is not something we are currently choosing to do.”

Yesterday OneSavings Bank announced its plans to join the scheme while both HSBC and Virgin Money announced their participation on Tuesday.

Aldermore had already publicly backed the scheme.