Spotlight On: Santander's mortgage deals

Simon Read
Friday 29 April 2011 19:00 EDT
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The deal

Santander has a new mortgage range which it says will help first-time buyers, movers and remortgagors.

The good points

A 2-year fixed deal at 5.55 per cent and a 3-year fix at 5.99 per cent, both need just 10 per cent deposit and offer a free standard mortgage valuation as well as £250 cashback on completion. There are also track and fix remortgages which allow borrowers to start out with a tracker deal but switch to a fixed rate when rates rise.

The bad points

First-timers are still penalised, as anyone with a 40 per cent deposit can get a 2.99 per cent 2-year fix. The fee on that is a steep £1,250, compared to £499 upfront fee on the higher-rate deals.

Conclusion

The mortgage market is becoming a little more interesting with increasing numbers of deals aimed at first-time buyers, but costs are still high. Santander does seem to offer a decent range of loans to suit different types of borrowers, but you should still trawl the market to find out what other lenders can do for you.

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