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Santander unveils 95% LTV mortgage details
Santander has announced the details of its 95% loan-to-value deals, which will replace the lender’s offering of the Help to Buy mortgage guarantee scheme.
Three products have been launched at 95% LTV; a two-year tracker, a two-year fixed rate and a five-year fixed rate, all purchase-only.
Its two-year tracker comes at a rate of 4.19% which is equivalent to the Bank of England’s base rate plus 3.69%. The two-year fixed rate is at a rate of 4.29% and its five-year fixed product has a rate of 4.89%. All deals have no booking fee.
Santander announced earlier this month that it would begin to lend on 95% LTV mortgages without the assistance of the Help to Buy 2 scheme.
According to a recent poll conducted by Mortgage Solutions, just under three quarters of mortgage professionals expect lenders to follow Santander and launch a raft of higher LTV options.
The lender has also made a number of rate changes, including an increase in the maximum loan size on its 90% LTV products from £500,000 to £570,000.
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Miguel Sard, managing director of mortgages said: “The government’s Help to Buy: mortgage guarantee scheme encouraged lenders to re-enter the 95 per cent LTV space. There is now a healthy market for customers with smaller deposits and we hope our new, competitively priced 95% LTV products will help customers looking to purchase their dream home. As a prudent lender ensuring customers can afford to meet their financial commitments is key, so we encourage them to seek independent financial advice.”