Santander UK has launched ‘My First Mortgage’, a 98% LTV five-year fix with a rate of 5.19%, zero product fee and £250 cashback.
My First Mortgage is available exclusively to first-time buyers and is available through mortgage brokers.
Research from Santander shows that more than half (52%) of UK adults said they found saving money for a deposit to be the biggest barrier to buying a property.
The new product requires a minimum £10,000 deposit, with maximum lending up to £500,000 repayable over a term of between five and 40 years.
Lending above 95 and up to 98% is available on existing houses only. Customers looking to purchase a new build property or flat are able to continue to access borrowing up to a maximum 95% LTV.
All lending remains subject to Santander’s broader affordability checks, including a maximum loan to income multiple of 4.45x salary.
David Morris, head of homes at Santander UK, said: “We know that saving for a deposit remains one of the biggest hurdles to homeownership. Last year, the average first-time buyer with Santander put down a deposit of more than £85,000, a figure that can feel unattainable for today’s aspiring homeowners, whether that’s a result of more modest income, limited family financial support, rising rental costs, and in some cases childcare expenses.
“We want to help more people benefit from the stability and sense of pride that owning a home brings, while maintaining our position as a responsible lender. My First Mortgage does just that, offering the chance to speed up the time to ownership with the reassurance that the buyer has received specialist mortgage advice and will have certainty of what they are expected to pay, every month, for the next five years.”
