Santander 98% LTV Mortgage for First-Time Buyers – Everything You Need to Know
Santander has launched a new 98% loan-to-value mortgage designed specifically for first-time buyers struggling to save a large deposit. The five-year fixed-rate mortgage, called My First Mortgage, offers a competitive solution for buyers looking to get onto the property ladder sooner.
What is Santander’s 98% LTV My First Mortgage?
The Santander My First Mortgage is a five-year fixed mortgage available exclusively to first-time buyers. It requires a minimum deposit of £10,000 and offers borrowing of up to 98% loan-to-value on existing houses.
Key features include a fixed interest rate of 5.19%, no product fee, £250 cashback, and repayment terms of between five and 40 years. The maximum loan size is £500,000, subject to affordability checks and a maximum loan-to-income ratio of 4.45 times.
Who is the mortgage suitable for?
This mortgage is best suited to first-time buyers with stable income who can comfortably afford the monthly repayments but have struggled to build a large deposit due to high rents and living costs.
Pros and cons of a 98% mortgage
The main benefit is faster access to home ownership with lower upfront savings. However, higher loan-to-value mortgages come with higher monthly payments and limited equity in the early years.
Is a 98% mortgage a good idea?
With the right advice and long-term plans, a 98% mortgage can be a sensible option. Speaking to an independent mortgage broker can help ensure it fits your circumstances.