Santander cut mortgage rates for first-time buyers

Santander has launched competitive new mortgage deals for homeowners who have very little equity or first-time-buyers with a five per cent deposit.

The new deals with rate cuts on 3,5 and 7-year fixed rate mortgages are available through the NewBuy mortgage scheme.

Santander has unveiled a 3-year fixed rate mortgage for those with a loan-to-value (LTV) ratio of 95 per cent with an interest rate of 4.99 per cent, down from 5.49 per cent.

For those with a similar LTV ratio, but looking for a longer fixed rate mortgage deal, its five and seven year fixed rate deal charges 5.29 per cent, down from 5.49 and 5.99 per cent respectively.

To further aid first-time buyers the products have low upfront fees of just £99, plus free valuation and £250 cashback once the mortgage has been completed.

The rate cuts are the first sign that the Bank of England's Funding for Lending scheme may lead to better mortgage deals for homeowners who do not have lots of equity in their property.

In the last two weeks, there have been four five-year fixed rate mortgage deals unveiled at under three per cent, but these have been reserved for those who only need to borrow up to 60 per cent of the value of their home.

The new rates are available exclusively through Abbey for Intermediaries and come with Homebuyer solution as standard.

Phil Cliff, Director of Santander Mortgages, said: "These NewBuy product rate reductions demonstrate Santander's continued commitment to helping customers get on the housing ladder.

“This reduction in rates coupled with low upfront fees of £99, make our NewBuy mortgage range the best value products available exclusively via the intermediary market."

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