Santander has launched a range of 95 per cent LTV products that are not part of the Help to Buy scheme.
It is offering a two-year tracker at 4.19 per cent (Bank of England base rate plus 3.69 per cent) for purchase only with zero booking fee.
It is also offering a two-year fixed rate at 4.29 per cent and a five-year fixed rate at 4.89 per cent, both of which have no booking fee and are available for purchase only.
Santander managing director of mortgages, Miguel Sard, says: “The Government’s Help to Buy: mortgage guarantee scheme encouraged lenders to re-enter the 95 per cent LTV space. There is now a healthy market for customers with smaller deposits and we hope our new, competitively priced 95 per cent LTV products will help customers looking to purchase their dream home. As a prudent lender ensuring customers can afford to meet their financial commitments is key, so we encourage them to seek independent financial advice.”
Earlier this month, Santander and Nationwide both announced their intentions to launch standalone 95 per cent LTV ranges, with the later earmarking £1bn to these products over the coming year.