Santander has launched a range of 95% LTV products through the government’s NewBuy Guarantee scheme.
All products come with a free standard mortgage valuation plus £250 cashback on completion.
The range includes three and five-year fixes at 5.49% and a seven-year fix at 5.99% – all with a £99 fee.
The bank will only offer the deals to specialist new-build brokers who are on the panels of Barratt Homes, Berkeley, Bovis Homes or Persimmon.
John Wakefield, manager at New Home Mortgage Services, says Santander is coming in with good rates and incentives.
He says: “It is pleasing to see another major lender getting involved with NewBuy and it is great to see such good rates. The free survey and cashback make it even more attractive so fingers crossed it will give the scheme a boost.”
But Mike Fitzgerald, sales director at Emba Group, says NewBuy rates are too high and need to come down.
He says: “The more lenders that are involved the more competition there will be. These rates from Santander will make other lenders sit up and take notice.
“It could encourage smaller mutuals to get involved which will drive better rates again and lead brokers to recommend the scheme.”