It aims to support first-time buyers and the wider transition to greener living
High street lender Santander UK has announced that it is increasing its maximum loan-to-value (LTV) ratio for new build properties to 95%, providing first-time buyers greater access to homeownership.
From Tuesday, February 27, Santander will become the only major UK lender to extend 95% LTV mortgages across both new build flats and houses, accessible through all builders and brokers. The offerings include a selection of five-year fixed rate products from the bank’s existing 95% LTV range.
Previously, the bank provided up to 85% LTV for new build houses and 80% LTV for new build flats.
“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,” said Graham Sellar, head of development for mortgages at Santander UK.
“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 EPC rating of ‘A’ or ‘B’, support the wider transition to greener living.”
The announcement coincides with the 2024 New Homes Week, led by the Home Building Federation, which focuses on encouraging new home construction and ownership.
“Santander’s introduction of 95% mortgages for new build homes is extremely welcome,” said David O’Leary, executive director at the Home Building Federation. “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 house builders 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, also commended Santander for its commitment to the new build market and the broader goal of transitioning to a lower carbon economy.
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