Santander raises LTVs to 90% on new builds

Santander raises LTVs to 90% on new builds


Santander has announced good news for those looking to make it onto the property ladder this year, as it raises its LTVs for first time buyers purchasing new build properties. 

The change marks the first time since March 2008 that the banking giant has lent up to 90% on a new build.


For first time buyers looking to buy a new build house, the LTV will be raised from 80% to 90%, halving the size of their deposit. Meanwhile, for first time buyers purchasing a new build flat, the maximum LTV will go from 70% to 80%.


Phil Cliff, mortgage director at Santander, commented: “We have seen confidence return to this segment of the property market and by increasing the maximum LTV on new build mortgages we are able to offer prudent first-time buyers more choice and flexibility.”


However, the maximum LTV ratios will only apply to first time buyers – other borrowers will still need to stump up larger deposits for new build properties.


The deal for first time buyers will be available on two mortgage products: a two-year tracker of 4.99% which comes with a £995 fee, and a three-year fixed rate loan of 5.99% with a £495 fee.

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