New 90% LTV Mortgage For First Time Buyers

Santander has launched a new 90% LTV mortgage at 5.29 per cent for their First Home Savers customers.

The new mortgage is a two year fix at 5.29%, but does come with a £495 up front application fee.

It comes with Santander’s Homebuyer Solution which offers the added benefits of a free basic mortgage valuation and £250 cash-back on completion. The new product is available exclusively to Santander First Home Saver customers for a limited period only.

First Time Buyers, hoping to qualify for this product must be a Santander First Home Saver account customer. The account, which pays a market leading 5 per cent is open to non-homeowners aged 16-35 years. Customers will need to deposit between £100 and £300 each month by standing order and can pay in up to £5,000 as an opening deposit.

Linking this mortgage to a savings account chimes with other findings from Santander which show that first time buyers save for 29 months, on average, to build a sufficient deposit for their first home.

Most FTB’s supply a 17 per cent deposit, on average, however it is surprising to note that ten percent of first home owners supply half of the property value as a deposit and a further 15 per cent buy their first home outright.

Commenting on the difficulties facing those struggling to gain their first foothold on the property ladder, Phil Cliff, Director of Santander Mortgages said:

“Santander understands the challenges that often face First Time Buyers which is why we offer a number of products dedicated to their needs, including our latest 10 per cent product at a market leading 5.29 per cent rate and £495 up front fee available exclusively to Santander First Home Saver customers.”

Customers can visit any local Santander branch to apply for a First Home Saver savings account. Existing First Home Saver account customers can find out more about the First Home Saver Mortgage offer by visiting any local Santander branch or by contacting Santander by telephone on 0800 023 2761.