Santander launches 90% LTV mortgage for first time buyers

Santander, the ‘Home of UK Mortgages' is launching a new market leading two year fixed Homebuyer product at 90 per cent LTV, with a 5.29 per cent and £495 fee - ideal for first time buyers taking that first step on to the ladder. In addition, it comes with Santander's Homebuyer Solution which offers the added benefits of a free basic mortgage valuation and £250 cash-back on completion. The new product is available exclusively to Santander First Home Saver customers for a limited period only.

To qualify for this market leading product, First Time Buyers must be a Santander First Home Saver account customer. The account, which pays a market leading 5 per cent is open to non-homeowners aged 16-35 years. Customers will need to deposit between £100 and £300 each month by standing order and can pay in up to £5,000 as an opening deposit.

Louise Holmes at Moneyfacts said: "The two year fixed Homebuyer rate is competitive in its field, offering 5.29%. Higher loan-to-value mortgages have begun to make a return to the market recently, however this is certainly one of the best overall short-term fixed package for rate, fees, borrowing amounts and incentives to grace the mortgage market this year."

Phil Cliff, Director of Santander Mortgages said: "As one of the UK's largest lenders we recognise the importance of supporting the First Time Buyer market, especially during the current economic climate, which is why we've launched one of the lowest rate 90 per cent products on the market.  Our market leading two year fix at 5.29 per cent offers a great rate with a low fee and will surely provide a welcome boost to the FTB market.

"With one in four first time buyers relying on their savings to get on the property ladder, it's even more important that they get their money to work hard for them. The Santander First Home Saver account already offers a market leading savings rate - now we're honouring our commitment to our customers and rewarding their loyalty with a market leading mortgage rate, the second time we have offered an exclusive mortgage rate to First Home Savers. We're keen to reward these savers and feel this product with its highly competitive 5.29 per cent rate and low fee certainly does that."

For more information, visit santander.co.uk.