Santander Launches 98% Mortgage for First-Time Buyers

Santander UK has launched a new mortgage product aimed at easing the path to homeownership for first-time buyers, allowing them to borrow up to 98 percent of a property's value with a minimum deposit of 10,000 pounds. The initiative, announced this week, targets aspiring homeowners in Britain excluding Northern Ireland and comes amid ongoing challenges in saving for deposits.

The "My First Mortgage" deal offers a five-year fixed interest rate of 5.19 percent, with no product fee and 250 pounds in cashback upon completion. It applies to properties valued up to 500,000 pounds, with loans repayable over terms ranging from five to 40 years and a minimum borrowing amount of 190,001 pounds. For loans exceeding 95 percent of the property's value, the product is restricted to existing houses, excluding new builds and flats. Buyers of new builds or flats can access up to 95 percent loan-to-value through other Santander options. All applications undergo affordability assessments, including a standard loan-to-income multiple of 4.45 times salary, though the bank may consider up to 5.5 times in some cases. The product is available exclusively to first-time buyers who are not self-employed...