Santander’s New 98% LTV Mortgage

On the 3rd of February, Santander introduced a major new option for aspiring homeowners - ‘My First Mortgage’, a 98% loan-to-value (LTV) product designed specifically for first-time buyers. This makes Santander the first major lender to offer borrowing above 95% LTV in today’s market, signalling a strong commitment to helping new buyers take their first step onto the property ladder.

With rising house prices and the challenge of saving a sizeable deposit, many first-time buyers find homeownership just out of reach. Santander’s new product aims to change that by offering a route to buy with a minimum deposit of just £10,000. The new 98% LTV product strikes a balance between accessibility and prudence, giving more buyers an opportunity to purchase without requiring unachievable savings.

Better still, gifted deposits from friends and family are accepted, helping younger buyers who receive financial support from loved ones. For many, this could make the dream of owning a home feel far more attainable.

This mortgage is tailored for a specific group of buyers. Here’s what you need to know:

Eligibility

• First-time buyers only – including joint applications.

• Maximum 98% LTV with a minimum deposit of £10,000.

• Maximum loan size: £500,000.

• Maximum term: 40 years.

• Repayment-only (no interest-only).

Property Restrictions

• Not available for flats.

• Not available for new builds.

• Not available for properties in Northern Ireland.

Applicant Restrictions

• Currently not available for self-employed applicants.

• Not compatible with Shared Ownership schemes (capped at 90% LTV at present).

Product Details

Here’s a breakdown of the product features:

• 5.19% fixed rate for 5 years.

• Up to 98% LTV.

• £0 product fee.

• Free standard valuation.

• £250 cashback to support buyers with upfront costs.

If you, or someone you know, is considering purchasing their first home, this new 98% LTV option may be worth exploring. Please contact us if you would like to speak about your options.

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage.