First-time buyer lending accounted for £1bn of Santander’s gross mortgage lending in the first quarter of the year.
The average loan-to-value (LTV) for new lending was 65% which included Help to Buy mortgages. All lending advanced at more than 90% LTV was done so using the government scheme. Mortgages with an LTV of over 85% made up 18% of new lending, 15% of which was Help to Buy.
In its statement the lender said it expected the decline it had seen in its Standard Variable Rate mortgages during Q1, which reduced by a net £2.1bn, to continue but at a slightly slower pace during the year.
Speaking at The But To Let Market Forum last week, head of intermediary distribution Paul Adams said Santander expected to lend £20bn of mortgages through the intermediary channel by the end of the year. A significant contribution would come from the buy-to-let sector. Adams said more than 80% of its buy-to-let business was originated through the intermediary channel.
Adams made the announcement during his presentation to brokers on fraud and gave the audience tips on how to identify fraudulent applications.
