From Tuesday 20 April, borrowers with a five per cent deposit will be offered a choice of three deals backed by the government’s mortgage guarantee scheme.
At 3.99 per cent, borrowers can opt for a two-year tracker or a three-year fixed rate mortgage. At 4.09 per cent families can fix for longer with a five-year deal.
Five-year fixed rates are a compulsory requirement for lenders using the mortgage guarantee.
None of the 95 per cent mortgage deals come with a product fee and all have a free valuation.
Borrowers who want to buy a new-build property will need to use the Help to Buy equity loan scheme. The Help to Buy equity loan scheme is now only available to first-time buyers.
Repayment mortgages only will be offered on houses priced up to £600,000 or flats and leasehold properties up to £400,000. Under the terms of the scheme, all deals are open to first-time buyers and homemovers.
Brad Fordham (pictured), head of mortgages at Santander, said: “We know that buying a home is expensive and finding the money for a deposit and the upfront costs can sometimes prove a barrier to potential homeowners.
“We’re pleased to be part of the government’s mortgage guarantee scheme by offering customers a range of 95 per cent LTV mortgages with the additional support of no upfront fees and a free valuation.”
Chancellor Rishi Sunak announced the 95 per cent mortgage guarantee scheme during the March Budget.
Under the terms of the scheme, the government will guarantee the amount of the mortgage lending over 80 per cent, which is 15 per cent of the 95 per cent loan to value mortgage.
Borrowers will be subject to Santander’s normal affordability checks. The mortgage deals are available through the intermediary and direct channels.