![Santander brings out high-LTV new-build products](https://www.mortgagesolutions.co.uk/wp-content/uploads/sites/1/2022/12/Santander-sign-3-300x300.jpg)
Santander has increased the maximum loan to value (LTV) for new-build houses and flats to 95 per cent, so borrowers only need a five per cent deposit to achieve homeownership.
Santander’s maximum LTV used to be a maximum 85 per cent for new-build houses and 80 per cent for new-build flats.
The change makes Santander – which recently increased its fixed rates – the only top-six lender in the UK to go up to 95 per cent LTV across new-build flats and houses through all builders and all brokers.
Customers buying a new build with a 95 per cent LTV mortgage will be able to select from the bank’s range of 95 per cent LTV of five-year fixed rates.
Graham Sellar, Santander’s head of development of 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.
“Our change will not only help more buyers get onto the property ladder sooner but, also, with the majority of new-build properties achieving an Energy Performance Certificate (EPC) rating of A or B, support the wider transition to greener living.”
He added: “The change from Santander comes at the start of the 2024 New Homes Week (NHW), an annual awareness campaign from the Home Building Federation (HBF), the representative body of homebuilders whose members build 80 per cent of all new homes in the UK in any one year. The theme for this year’s week, which starts on Monday 26 February, is ‘Tomorrow awaits: Make it yours’.”
David O’Leary, executive director at the HBF, added: “Santander’s introduction of 95 per cent LTV 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.
“Improving the availability of mortgages not only helps address the country’s growing housing divide, but it provides confidence for housebuilders to invest and continue to deliver more high-quality and energy-efficient new homes in the years ahead.”
Adrian MacDiarmid, head of mortgage lender relations at Barratt Developments, said: “The increase in LTVs is a testament to Santander’s support for the new-build market and to their commitment to addressing not just the challenge of first-time buyers aspiring to own their own home, but also our collective responsibility to support the transition to a lower-carbon economy.”
Anna is a reporter for Mortgage Solutions and assistant editor for Specialist Lending Solutions, both B2B sister titles of YourMoney.com. She has worked as a journalist for over four years, initially in the specialty insurance sector before moving onto mortgages.