Major UK bank launches new 2% deposit mortgage for first-time buyers
What you need to know about Santander’s ‘my first mortgage’ deal
- Santander UK has introduced a new 'my first mortgage' product for first-time buyers, requiring a deposit of just 2 per cent, with a minimum deposit of £10,000.
- The deal features a fixed rate of 5.19 per cent over five years with no product fee, offering up to 98 per cent loan-to-value (LTV) for properties valued up to £500,000.
- This mortgage is available to applicants in Britain, excluding Northern Ireland, and is not open to self-employed individuals, with all lending subject to Santander's broader affordability checks.
- Santander highlighted that saving for a deposit remains one of the biggest hurdles to homeownership, noting that the average first-time buyer deposit with them last year was over £85,000.
- Financial experts recommend that prospective borrowers seek advice, pointing out that building societies are also actively providing innovative products to support new buyers.
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