From tomorrow, Santander is reducing the interest rate on its recently launched 98% LTV 'My First Mortgage' by 0.20% to 4.99%, alongside wider rate cuts to its high-LTV mortgage products.
My First Mortgage, which launched last month, is available to first-time buyers looking to purchase an existing house, with a minimum £10,000 deposit and borrowing up to a maximum of £500,000.
The reduction comes as the bank announces further cuts across all of its 85%+ LTV first-time buyer products by up to 0.38%, including a return to sub-4% lending at 90% LTV with a two-year fixed at 3.99%, alongside reductions to many higher LTV home mover and new build specific products of up to 0.33%.
For first-time buyers, all 85-95% LTV two-year fixed rates are reducing by up to 0.23%, three-year fixes by up to 0.38%, and five-year rates by up to 0.20%.
Home mover 85-95% LTV two-year fixes will decrease by up to 0.18% and three-year fixes by up to 0.33%.
In Santander's remortgage range, all 85% and 90% LTV two-year fixes are down by up to 0.11%, 60% and 75% LTV three-year fixes will decrease by up to 0.08%, and five-year rates at 85% and 90% LTV will reduce by up to 0.05%.
David Morris, director of homes at Santander UK, said: “We launched My First Mortgage with the aim of helping more first-time buyers take their initial step onto the property ladder. I’m proud to say that in the weeks since we’ve launched, we have done just that with many first-time buyers receiving offers of lending under My First Mortgage. It’s fantastic to be able to go one step further and reduce the interest rate so soon after launch to that crucial sub-5% mark, that we know so many buyers are seeking when looking at higher LTV borrowing.
“Our latest cuts show that we’re also still here to support a range of buyer types, with reductions across our new build, home mover and remortgage products helping customers further manage the costs of owning their dream home.”
