Bank to offer 95% mortgages but only on certain homes
Santander is lowering the required percentage mortgage deposit for new-build homes from Tuesday.
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Your support makes all the difference.Santander will offer 5% deposit mortgages on new-build homes from Tuesday.
Currently, the lender requires at least a 15% deposit for new-build houses and 20% for new-build flats.
The new lower 5% deposit requirement will apply to both new-build houses and flats.
Customers buying a new-build home with a 5% deposit will be able to select from the bank’s current range of five-year fixed-rate products.
Graham Sellar, head of development, mortgages said: “We know that saving for a deposit is one of the biggest hurdles for aspiring homeowners, especially for those juggling rental payments against trying to save.”
David O’Leary, executive director at the Home Builders Federation said: “Santander’s introduction of 95% mortgages for new-build homes is extremely welcome.
“Most of us recognise that there is a shortage of homes and it’s becoming harder for younger households to step into homeownership.”
Santander was one of several lenders to raise some mortgage rates this week, citing wider market conditions, including swap rates, which lenders use to price their loans, as an issue.
HSBC UK increased some of its mortgage rates on Friday, across its homeowner and buy-to-let range.
An HSBC UK spokesperson said: “We’re firmly focused on supporting customers to move onto or up the property ladder or renew their mortgage with us.
“There are several factors that are taken into account when setting mortgage rates, including swap rates which have increased and like other providers, we have had to reflect that in our mortgage rates.
“As a result, there have been increases to our residential mortgages. We continue to keep our rates under review.”
According to financial information website Moneyfacts, the average two-year fixed residential mortgage rate on the market on Friday was 5.74%, up from an average rate of 5.72% on Thursday.
The average five-year fixed residential mortgage rate on the market was 5.31%, up from an average rate of 5.30% on Thursday.