Santander to launch FTB range outside HTB

Santander is the latest lender to confirm that it will lend at 95% LTV without the assistance of HTB2 scheme.

Related topics:  Mortgages
Rozi Jones
11th September 2015
santander

The Government’s scheme is due to finish in 2016, and Santander's range confirms that it will contonue to lend to borrowers with a 5% deposit beyond the term of the scheme.

On 29 September, all new applications above 90% LTV will be undertaken as a standard Santander mortgage. Santander's new policy for loans up to 95% LTV is based directly on the HTB2 policy, and all applications submitted by this date will still proceed as HTB2.

Miguel Sard, Santander's Managing Director of Mortgages, said:

"Help to Buy 2 has achieved its goal ahead of its three year term. The Government’s guarantee scheme has been successful in encouraging lenders to re-enter the 95% LTV space and in giving confidence to prospective borrowers who don’t have a large deposit. After almost two years’ lending in the scheme and given the quality of loans issued over the period, we’re ready to extend our commitment to lending up to 95% LTV without the need for government support.

"There is now a healthy market for customers with smaller deposits. Our new 95% LTV products, alongside the Help to Buy: equity loan and Shared Ownership schemes, provide customers with choice when it comes to purchasing their first home. Santander will also be offering HTB ISA products later this year, and ISA customers will have access to all of our mortgage products."

This week the Government published figures showing the number of people the Help to Buy schemes have supported. As the Government noted, the success of the Help to Buy: mortgage guarantee scheme may mean that some lenders could start to exit the scheme ahead of its expiry at the end of next year, to introduce their own 95% Loan to Value mortgage products.

Earlier this week, Nationwide announced that it would provide £1billion of additional lending over the next year for house buyers with a 5% deposit, that are not part of any scheme.

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